Allied Waste's "A" tranche notched down to 96 5/8 last week from a level in early September of 99 7/8 and market players attributed the slump to a general economic slowdown. A dealer said Allied's bank debt has been in the 95-96 range throughout the early part of the week. The credit has been one of the strongest in the market, due to the defensive-nature of the trash hauling business, but dealers say the market downturn could be hitting even stable names. "The [terrorist] attacks shouldn't affect their business. Maybe there are transportation hassles the company may be experiencing carting trash away," a dealer speculated. The company is based in Scottsdale, Ariz. Thomas Ryan, cfo, referred questions to Mike Burnett, who did not return calls.
Prior to Sept. 11, dealers were touting Allied as among the safest bets in the market, calling it a defensive name even as the market slows. Allied Waste has a $7 billion credit facility which breaks down into five tranches and is priced at LIBOR plus 21/ 2%. J.P. Morgan Chase, Credit Suisse First Boston, and Salomon Smith Barney are the lead arrangers.