Republic Services begins $250 million modified Dutch auction tender offer for four series of notes

By Susanna Moon

Chicago, Aug. 31 - Republic Services, Inc. and its subsidiary, Allied Waste North America, Inc., began a $250 million modified Dutch auction tender offer for four series of notes.

The company said it will pay between $1,030.00 and $1,057.50 for its $346.53 million of 6.5% senior notes due 2010; between $1,031.25 and $1,058.75 for its $396.54 million of 5.75% senior notes due 2011; between $1,038.75 and $1,066.25 for its $270 million of 6.375% senior notes due 2011; and between $1,050.00 and $1,077.50 for its $450 million of 6.75% senior notes due 2011.

The total payment includes a premium of $30.00 for notes tendered by 5 p.m. ET on Sept. 14, the early participation date.

The offer will expire at midnight ET on Sept. 29.

The price per $1,000 principal amount of tendered notes will be based on a base price of $1,030.00 for the 6.5% notes, $1,031.25 for the 5.75% notes, $1,038.75 for the 6.375% notes and $1,050.00 for the 6.75% notes, plus a clearing premium of up to $27.50.

The clearing premium will be the lowest single premium at which the issuers will be able to spend $250 million by accepting all tendered notes. If the amount of notes tendered at or below the clearing premium would cause the issuers to spend more than a total of $250 million, then the tendered notes will be subject to proration.

The company also will pay accrued interest to the purchase date.

Bank of America Merrill Lynch (888 292-0070 or collect 646 855-3401) is the lead dealer manager, and Barclays Capital Inc. and J.P. Morgan Securities, Inc. are co-dealer managers.

Global Bondholder Services Corp. (866 389-1500 or collect 212 430-3774) is the information agent and depositary.

In a merger between the two waste services companies, Allied became a wholly owned subsidiary of Republic. The combined company is based in Phoenix.

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