Allied Waste Unveils New Financing Plan

Scottsdale, Ariz. — Allied Waste Industries Inc. has unveiled a new financing plan that the company says is aimed at "substantially enhancing liquidity, significantly extending maturities, reducing interest costs and improving its capital structure while accelerating de-leveraging."

The financing plan includes the issuance of the following: about $100 million of common stock: approximately $500 million of three-year, mandatory convertible preferred stock; about $600 million of 10-year senior notes; and the placement of a $3.45 billion credit facility.

The proceeds will be used to repay the remaining $195 million of 10 percent senior subordinated notes due in 2009; repay $125 million of 9.25 percent senior notes due in 2012; repay the $600 million 7.625 percent senior notes due in January 2006; repay the $70 million 7.875 percent senior notes due in March 2005; and fully repay amounts outstanding under the existing credit facility and reduce the term loan by about $100 million.