Republic Services, Inc. Announces Tender Offer
August 31 2009 - 10:24AM
PR Newswire (US)
PHOENIX, Aug. 31 /PRNewswire-FirstCall/ -- Republic Services, Inc.
(NYSE: RSG) announced today that it and its subsidiary, Allied
Waste North America, Inc. (the "Offerors"), have commenced a cash
tender offer (the "Tender Offer") to purchase a portion of the
outstanding notes listed in the table below. Pursuant to a modified
"Dutch Auction" procedure and in accordance with the terms and
conditions set forth in an Offer to Purchase dated August 31, 2009
(the "Offer to Purchase") and related Letter of Transmittal
(collectively, the "Offer Documents"), the maximum payment in cash
(excluding accrued interest) to purchase such notes will be $250
million. The notes subject to purchase (collectively, the "Notes")
and other information relating to the Tender Offer are listed in
the table below. Total Outstanding Early Consideration Principal
Participation (Acceptable Bid Series of Notes CUSIP No. Amount
Amount(1) Price Range)(1)(2) --------------- --------- -----------
------------- ----------------- 6.500% Senior Notes due 2010
01958XBA4 $346,530,000 $30.00 $1,030.00 - $1,057.50 5.750% Senior
Notes due 2011 01958XBD8 $396,540,000 $30.00 $1,031.25 - $1,058.75
6.375% Senior Notes due 2011 01958XBK2 $270,000,000 $30.00
$1,038.75 - $1,066.25 6.750% Senior Notes due 2011 760759AC4
$450,000,000 $30.00 $1,050.00 - $1,077.50 --------------- (1) Per
$1,000 principal amount of Notes that are accepted for purchase.
(2) Includes the $30.00 Early Participation Amount. The following
is a summary of key terms of the Tender Offer. -- The total
consideration payable pursuant to the Tender Offer per $1,000
principal amount of Notes validly tendered and accepted for
purchase will be determined based on a formula consisting of a base
price (which includes the Early Participation Amount) equal to (i)
$1,030.00 for the 6.500% Senior Notes due 2010, (ii) $1,031.25 for
the 5.750% Senior Notes due 2011, (iii) $1,038.75 for the 6.375%
Senior Notes due 2011 and (iv) $1,050.00 for the 6.750% Senior
Notes due 2011, plus a clearing premium not to exceed $27.50. --
The clearing premium will be the lowest single premium at which the
Offerors will be able to spend $250 million by accepting all
tendered Notes with bid premiums equal to or lower than the
clearing premium. If the aggregate amount of Notes tendered at or
below the clearing premium would cause the Offerors to spend more
than a total of $250 million, then holders of the Notes tendered at
the clearing premium will be subject to proration (rounded downward
to the nearest $1,000) as described in the Offer to Purchase. --
Notes tendered and not withdrawn on or prior to 5:00 p.m., New York
City time, on September 14, 2009, unless extended by the Offerors
(the "Early Participation Date"), will receive an early
participation amount of $30.00 per $1,000 principal amount of Notes
tendered (the "Early Participation Amount"). Notes tendered after
the Early Participation Date and on or prior to the Expiration Date
(as defined below) will not receive the Early Participation Amount.
-- Accrued and unpaid interest will be paid on all Notes tendered
and accepted for payment in the Tender Offer from the last interest
payment date to, but not including, the date on which the Notes are
purchased. -- The Tender Offer is scheduled to expire at 12:00
a.m., New York City time, on September 29, 2009, unless extended or
earlier terminated by the Offerors (the "Expiration Date"). --
Tendered Notes may be withdrawn at any time prior to 5:00 p.m., New
York City time, on September 14, 2009, unless extended by the
Offerors (the "Withdrawal Date"). Notes tendered after the
Withdrawal Date may not be withdrawn. This announcement is for
informational purposes only and is not an offer to purchase or a
solicitation of an offer to purchase any Notes. The Tender Offer is
being made solely pursuant to the Offer Documents. Closing of the
tender offer is subject to the conditions described in the Offer
Documents, including the completion of our concurrent private
offering of senior notes due 2019 and market and other factors.
Additionally, with respect to the Tender Offer, we expect to incur
a third quarter charge for premiums paid to retire the notes being
tendered and any unamortized discounts or debt issue costs related
to the notes being tendered. As we are uncertain as to the quantity
and series of notes to be tendered, we are unable to estimate the
charge at this time. Additional Information The Offerors have
retained BofA Merrill Lynch to act as the lead dealer manager and
Barclays Capital and J.P. Morgan to act as co-dealer managers for
the Tender Offer. Global Bondholder Services Corporation is the
Information Agent and Depositary for the Tender Offer. Questions
regarding the Tender Offer: Requests for documentation: BofA
Merrill Lynch Debt Global Bondholder Services Advisory Services
Corporation (888) 292-0070 (toll-free) (866) 389-1500 (toll-free)
(646) 855-3401 (collect) (212) 430-3774 (collect) The Tender Offer
is not being made to holders of Notes in any jurisdiction in which
the making or acceptance thereof would not be in compliance with
the securities, blue sky or other laws of such jurisdiction. In any
jurisdiction in which the securities laws or blue sky laws require
the Tender Offer to be made by a licensed broker or dealer, the
Tender Offer will be deemed to be made on behalf of the Offerors by
the dealer managers, or one or more registered brokers or dealers
that are licensed under the laws of such jurisdiction. About
Republic Services, Inc. Republic Services, Inc. is a leading
provider of services in the domestic, non-hazardous solid waste
industry. The Company provides non-hazardous solid waste collection
services for commercial, industrial, municipal, and residential
customers through 380 collection companies in 40 states. It also
owns or operates 239 transfer stations, 203 solid waste landfills
and 79 recycling facilities. Republic serves millions of
residential customers under contracts with more than 3,000
municipalities for waste collection and residential services. It
also serves commercial customers throughout its expansive service
area. INFORMATION REGARDING FORWARD LOOKING STATEMENTS The
disclosures herein include "forward looking statements" within the
meaning of the federal securities law concerning Republic's
proposed Tender Offer. The terms of, and Republic's ability to
complete, such transaction will depend upon prevailing market
conditions and other factors. The forward-looking statements are
subject to these and other risks and uncertainties that could cause
actual results to differ materially from future results expressed
or implied by such forward-looking statements. DATASOURCE: Republic
Services, Inc. CONTACT: Media Inquiries: Susan David,
+1-480-627-2885, or Investor Inquiries: Ed Lang, +1-480-627-7128
Web Site: http://www.republicservices.com/
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