J.P. Morgan and Citibank are in the market with a $150 million add-on term loan "D" for Allied Waste Industries that could be priced lower than the company's "B" and "C" tranches. Price talk on the new piece is LIBOR plus 21/2%. Allied's existing $1.185 billion "B" loan, $250 million "C" loan and $200 million institutional letter of credit facility are priced at LIBOR plus 23/4%.
In August, Allied amended its credit facility to allow for the additional "C" loan and in November, a second amendment was completed that cut the pricing down to LIBOR plus 23/4%. The "B" loan and institutional letter of credit facility were previously priced at LIBOR plus 31/4%. The company also has a $1.5 billion revolver priced at LIBOR plus 3%. Michael Burnett, Allied's v.p. of investor relations, and Citi bankers did not return calls and a J.P. Morgan spokesman declined comment.