Republic Services subsidiary begins tender for 9.25%, 7.4% notes

By Angela McDaniels

Tacoma, Wash., April 25 - Browning-Ferris Industries, LLC began tender offers for its $94.5 million of 9.25% debentures due 2021 and $360 million of 7.4% debentures due 2035, according to a news release from parent company Republic Services, Inc.

The payment per $1,000 principal amount of notes will be calculated as of 2 p.m. ET on April 29 using a reference security plus a spread. The reference security is the 3.625% Treasury due February 2021 for the 9.25% debentures and the 4.25% Treasury due November 2040 for the 7.4% debentures. The spread is 120 basis points for the 9.25% debentures and 125 bps for the 7.4% debentures.

The total consideration will include an early tender payment of $50.00 for each note tendered by 5 p.m. ET on April 29, the early tender date.

Holders will also receive accrued interest up to but excluding the settlement date, which is expected to be May 9.

The offers began April 22 and will expire at midnight ET on May 6.

The completion of the tender offers is subject to Republic Services completing an offering of new debt securities and other conditions.

The dealer managers for the tender offers are Merrill Lynch (888 292-0070 or 980 387-3907), Barclays Capital Inc. (800 438-3242 or 212 528-7581) and J.P. Morgan Securities LLC (866 834-4666 or 212 834-3424). The information agent and depositary is Global Bondholder Services Corp. (866 795-2200 or 212 430-3774).

Republic Services is a waste collection company based in Phoenix.

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