Investors devoured at least $1 billion of the $1.5 billion institutional loan for Allied Waste Industries by the time last Wednesday's retail bank meeting was held. Pricing tightened from LIBOR plus 31/2% to LIBOR plus 31/4% ahead of the launch because of the strong reception, a banker stated. The coupon still beats the existing term debt's LIBOR plus 23/4-3% spreads. More investors were expected to jump into the loan last week as LMW went to press, and another market player suggested that pricing could be flexed down further. The "B" piece is joining a $1.5 billion revolver that had been filled out ahead of the retail launch and priced at LIBOR plus 3% (LMW, 4/7). J.P. Morgan and Citigroup are leading the $3 billion refinancing credit, with UBS Warburg, Credit Suisse First Boston and Deutsche Bank also serving as top tier agents. Bankers on the deal either declined to comment or did not return calls.
The waste-services company is refinancing its debt alongside two bond deals and a common stock issuance. The company has already raised $825 million through the stock and note transactions. Additionally, the planned $300 million, 10-year note deal ended up being increased by $150 million. It is priced at 77/8%. An Allied Waste official did not return calls.