Advanced Disposal eyes $830 million bonds to help fund Veolia Solid Waste acquisition

By Paul A. Harris

Portland, Ore., Aug. 21 - Advanced Disposal Services Inc. is expected to sell $830 million of senior notes as part of financing for the acquisition of Veolia ES Solid Waste Inc., according to an informed source.

The syndication of an $830 million six-year bridge loan backing the bonds wrapped up last week.

Deutsche Bank Securities, Inc., Macquarie Capital, UBS Investment Bank, Barclays and Credit Suisse Securities (USA) LLC led the bridge and will lead the bond deal, the source added.

The financing also includes a $300 million revolver and a $1.65 billion term loan. The bank deal is expected to kick off at a September bank meeting.

Proceeds will be used to 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.

The deal is four-times leveraged at the senior secured level and six-times leveraged at the unsecured level.

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.

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

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