DALLAS - Units of Bank of Boston Corp., J.P. Morgan & Co., and First Chicago Corp. are leading a $550 million loan for USA Waste Services Inc., which performs both waste collection and disposal in multiple locations nationwide.

The Dallas-based company said it had executed a commitment letter setting forth the principal terms for a $550 million bank credit facility in connection with its planned merger with Chambers Development Co.

The facility, which is conditioned upon consummation of the merger, will be used to refinance some USA Waste's and Chambers' existing indebtedness and to provide funding for the settlement of a shareholder class action against Chambers.

The facility will also be available for letter-of-credit purposes and will provide about $75 million of new funds, which USA Waste anticipates using primarily for additional acquisitions. The company expects the financing to close around the end of the month.

The facility, which will be underwritten equally by the First National Bank of Boston, Bank of America Illinois, and Morgan Guaranty Trust Company of New York as agent banks, will be split into two five-year tranches: a $300 million revolving credit agreement, and a $250 million term loan agreement.

"Based upon the structure of the facility, current interest rates would allow USA Waste to borrow initially at a cost of less than 8%," said Earl E. DeFrates, USA Waste's executive vice president and chief financial officer.

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