Allied Waste tenders for 8 7/8% notes

New York, May 3 - Allied Waste Industries, Inc. said its Allied Waste North America, Inc. subsidiary has started a tender offer for its $600 million of 8 7/8% senior secured notes due 2008.

For each $1,000 principal amount, holders will receive a price based on the remaining scheduled payments of principal and interest on the notes, discounted using the comparable Treasury yield plus 50 basis points. Accrued interest up to the early settlement date will be subtracted from the total.

The total amount includes a $12.50 per $1,000 consent payment that will only be received by holders who tender by the consent deadline of 5 p.m. ET on May 16.

The tender ends at 11:59 p.m. ET on May 31.

Allied Waste will also pay accrued interest up to the settlement date, expected to be May 17 for early settlement and June 1 for final settlement.

The Scottsdale, Ariz.-based waste services company will fund the tender from the sale of $600 million of new senior secured notes due 2016.

As part of the tender, Allied Waste is soliciting consents to amend the notes to eliminate substantially all of the restrictive covenants and certain events of default and reduce the required notice period for an optional redemption.

The tender is subject to completion of the sale of new notes and the receipt of enough consents to amend the existing notes.

UBS Investment Bank (888 722-9555 ext. 4210) and Citigroup Corporate and Investment Banking (800 558-3745) are dealer manager and solicitation agents.

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