ADS Waste launches $1.65 billion term loan B at Libor plus 450 bps

By Sara Rosenberg

New York, Sept. 13 - ADS Waste Holdings Inc. launched its $1.65 billion term loan B on Thursday with price talk of Libor plus 450 basis points with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The B loan has 101 soft call protection for one year, the source said.

The company's $1.95 billion credit facility also includes a $300 million revolver that is being offered with a 100 bps upfront fee for orders of $15 million.

Commitments are due on Sept. 27, the source added.

Deutsche Bank Securities, Inc., Macquarie Capital, UBS Investment Bank, Barclays Capital Inc. and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

Proceeds, along with $830 million of senior unsecured notes, will fund the purchase of Veolia ES Solid Waste Inc. from Veolia Environmental Services North America Corp. in a transaction valued at about $1.9 billion.

At close, Star Atlantic Waste Holdings LP, a Highstar Capital portfolio company, will combine its existing investments in Advanced Disposal Services Inc. and Interstate Waste Services Inc. with the acquired Veolia operations.

The combined business will operate as Advanced Disposal Services and will have annual revenues of about $1.4 billion.

The deal is about 4 times leveraged at the senior secured level and about 6 times leveraged at the unsecured level.

Closing is expected this fall, subject to customary regulatory approvals.

ADS Waste is a Jacksonville, Fla.-based provider of integrated, non-hazardous solid waste collection, transfer, recycling and disposal services.

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