Published on 5/4/2006 in the Prospect News High Yield Daily.
New Issue: Allied Waste prices $600 million 10-year notes to yield 7¼%
By Paul A. Harris
St. Louis, May 4 - Allied Waste North America Inc. priced a $600 million issue of 7 1/8% 10-year senior secured notes (B2/BB-/B+) at 99.123 to yield 7¼% on Thursday, according to informed sources.
The yield came at the wide end of the 7 1/8% to 7¼% price talk.
Citigroup, JP Morgan and UBS Investment Bank were joint bookrunners for the quick-to-market issue, which priced via Rule 144A with registration rights and via Regulation S. Credit Suisse, Deutsche Bank Securities, Banc of America Securities LLC, Wachovia Securities, BNP Paribas, Scotia Capital and Calyon Securities were the co-managers.
Proceeds will be used to fund the tender for the company's $600 million of outstanding 8 7/8% senior secured notes due 2008.
The issuer is a wholly owned subsidiary of Scottsdale, Ariz.-based Allied Waste Industries Inc., a waste services company that provides collection, recycling and disposal services to residential, commercial and industrial customers in the United States and Puerto Rico.
| Issuer: | Allied Waste North America Inc.
|
| Amount: | $600 million
|
| Maturity: | Nov. 15, 2016
|
| Security description: | Senior secured notes
|
| Bookrunners: | Citigroup, JP Morgan, UBS Investment Bank
|
| Co-managers: | Credit Suisse, Deutsche Bank Securities, Banc of America Securities LLC, Wachovia Securities, BNP Paribas, Scotia Capital, Calyon Securities
|
| Coupon: | 7 1/8%
|
| Price: | 99.123
|
| Yield: | 7¼%
|
| Spread: | 210 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps until May 15, 2011, then callable at 103.563, 102.375, 101.188, par on and after May 15, 2014
|
| Equity clawback: | Until May 15, 2009 for 33 1/3% at 107.125
|
| Trade date: | May 4
|
| Settlement date: | May 17
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: BB-
|
| Fitch: B+
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | 7 1/8%-7¼%
|
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