IESI tenders for 10¼% notes

New York, Nov. 29 - IESI Corp. said it has begun a cash tender offer and consent solicitation for any and all of its $150 million outstanding principal amount of 10¼% senior subordinated notes due 2012.

The transaction is part of the company's acquisition by BFI Canada Income Fund.

The consent solicitation is to eliminate substantially all of the restrictive and reporting covenants, certain events of default and certain other provisions in the note indenture.

The Fort Worth, Texas, solid waste management company said it will set pricing for the tender at 10 a.m. ET on Dec. 22.

For each $1,000 principal amount of the notes, IESI will pay the present value of $1,051.25 on June 15, 2007, discounted at a rate of 75 basis points over the 3 1/8% U.S. Treasury note due May 15, 2007. The total includes a $20.00 per $1,000 consent payment that will only be paid to holders who tender by the consent deadline of 5 p.m. ET on Dec. 10.

The tender expires at 5 p.m. ET on Jan. 7.

All holders will also receive accrued interest up to but excluding the payment date.

Funding for the tender will come from a public offering by BFI of subscription receipts for ordinary trust units.

The tender is subject to the completion of the merger and the receipt of consents from holders of at least a majority of the principal amount of outstanding notes.

Credit Suisse First Boston LLC is the dealer manager and solicitation agent (800 820-1653 or 212 538-0652). Morrow & Co. Inc. is the information agent (800 607-0088).

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