ADS Waste downsizes to $550 million, talks eight-year senior notes to yield 8¼%-8½%

By Paul A. Harris

Portland, Ore., Sept. 24 - ADS Waste Holdings Inc. downsized its notes offering to $550 million from $700 million and shifted $150 million of proceeds to its bank loan, a market source said on Monday.

The company talked the eight-year senior notes (Caa1) to yield 8¼% to 8½%.

Books close at noon ET on Tuesday, and the deal is set to price thereafter.

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

Proceeds will be used to help 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.

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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