Allied Waste's "B/C" continues to trade in the 99 range on news of a bond deal that will pay down the company's bank debt. The estimated volume last week was $20 million. Late last month, the company announced a $750 million bond deal that would pay down a portion of the company's $7 billion deal. Allied Waste is a trash-hauling company based in Scottsdale, Ariz. Calls to Thomas Ryan, cfo, and Mike Burnett, head of investor relations, were not returned.
Allied Waste's relative stability in a market fraught with bankruptcy announcements, management turnover, and fraud investigations has helped maintain investor appetite for the credit, dealers say. "It seems to be a well-managed company that's not facing any issues that other companies have--there's no fraud or accounting issues," a trader said, adding there are already predictions that the company will do another bond deal. "People see them doing another bond issue and taking out the rest of the bank debt," he added.
On the economic slowdown, Allied Waste's levels traded as low as 96 (LMW, 11/11). Company officials also announced that Sept. 11 put pressure on earnings. Allied has a $7 billion credit facility which breaks down into five tranches. J.P. Morgan Chase, Credit Suisse First Boston and Salomon Smith Barney are the lead arrangers.