Allied Waste Rises On Bond Deal

  • 17 Nov 2002
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Allied Waste Industries' bank debt traded up after the company announced that it was able to quickly secure $300 million of senior notes. The proceeds from the transaction will go to pay down Allied Waste's term loans ratably. The news gave the company's term loan "B" a mild boost and traders said the paper was changing hands in the 98-98 1/2 context up from the 97 range. The new notes bear a coupon of 91/ 4%. Questions to Thomas Ryan, cfo, were referred to a spokesman, who did not return calls.

Two weeks ago Owens-Illinois also completed an offering of 10-year notes that was upsized to $450 million from an intended $300 million. Some $65 million of the proceeds will be used to pay down the company's term loan, and the remaining amount will be used to pay down Owens-Illinois' revolver and retire that portion. The news caused the company's bank debt to trade a touch better with its term loan north of 99 and the revolver quoted in the 95 1/2-96 1/2 range. Officials at Owens-Illinois declined to comment citing the private nature of the transaction.

One source familiar with the Owens- Illinois transaction said the strength of recent inflows into high-yield mutual funds encouraged the company to tap the high-yield market. In addition, the success of the Dex Media East offering proved the high-yield market had an appetite for new paper. "It showed that there was a lot of money out there looking for a home," said the source. With proceeds from recent offerings slated to pay down debt this could be a positive trend for the loan market, noted one dealer, speculating that Lyondell Chemical could be next.

  • 17 Nov 2002

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 14,443 29 18.07
2 Bank of America Merrill Lynch (BAML) 8,264 27 10.34
3 Lloyds Bank 7,329 24 9.17
4 Citi 6,748 19 8.44
5 JP Morgan 5,220 8 6.53

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 117,261.12 337 11.09%
2 Bank of America Merrill Lynch 94,721.79 272 8.96%
3 JPMorgan 92,612.23 269 8.76%
4 Wells Fargo Securities 82,597.19 239 7.81%
5 Credit Suisse 69,442.99 183 6.57%