Magazine article American Banker

Loan for Allied Waste Increased to $1.275 Billion

Magazine article American Banker

Loan for Allied Waste Increased to $1.275 Billion

Article excerpt

Goldman Sachs & Co., CS First Boston, and Citicorp have increased their blockbuster loan for Allied Waste Industries by $50 million to $1.275 billion.

The deal backing the acquisition of the trash handling business of Laidlaw Inc. was handsomely oversubscribed by last Friday, bringing in more than 30 commitments.

Sources close to the deal said the banks would have little trouble recommitting to the deal after the minimal increase in deal size.

The loan marks the largest to date for Goldman Sach's lending operation, which has only been leading deals for the past two years. Goldman won a range of financing positions for Allied's acquisition, including leading a well-received bond issue and serving as adviser.

Bankers generally didn't see a difference between the Goldman-led deal and those arranged by commercial banks.

"The bankers at Goldman speak the same language and do the same things," said a banker who participated in the deal.

"It's a well-structured, well-priced deal," said another banker who committed to the transaction. "Management presents well, and the sponsors are strong. When you couple that with the fact that there is little in the market of its quality, that explains its warm and rapid acceptance into the bank loan market."

Bankers said that the waste management business itself has "come of age" in the last couple of years. For instance, Bank of Boston Corp. led a well received transaction for USA Waste earlier this year. …

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