DOW JONES NEWSWIRES
Republic Services Inc. (RSG) on Monday announced a bond offering
to help pay for a tender offer of shorter-dated debt.
The waste-services company said it plans a private bond offering
of $500 million in senior notes due 2019 to pay up to $250 million
in a tender offer for notes due 2010 and 2011.
The new notes, which will be general senior unsecured, also are
meant to reduce outstanding debt under its revolving credit
facility and make tax payments related to the merger with Allied
Waste. The remainder of the proceeds will go to general purposes,
including capital expenditures.
For each $1,000 of principal, Republic is offering $1,030 for
6.5% senior notes due 2010, $1,031.25 for 5.75% senior notes due
2011, $1,038.75 for 6.375% senior notes due 2011, and $1,050 for
6.75% senior notes due 2011, plus a clearing premium not to exceed
$27.50. The figures include an early participation amount for
holders that tender before 5 p.m. EDT Sept. 14, worth $30 per
$1,000 of principal.
After that deadline, no tenders can be withdrawn. The tender
offer is set to expire at midnight EDT Sept. 29.
Republic expects to have a third-quarter charge as a result of
the tender.
Last week, Fitch Ratings boosted its ratings outlook for
Republic to positive in the wake of the company's performance since
December's $6.24 billion purchase of rival Allied Waste.
Republic shares were recently down less than 1% to $25.71 in a
slightly down market overall. The stock is flat year to date.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com