Chase Manhattan Corp. will lead one of the largest, highly leveraged syndicated loan deals ever, backing Allied Waste Industry Inc.'s $9.1 billion buyout of Browning-Ferris Industries Inc.
The deal announced Monday would include $9.5 billion in senior financing to make the acquisition and give the merged company working capital.
Chase, which advised Allied Waste in its negotiations along with Salomon Smith Barney Inc., will manage a $7 billion senior secured loan and a $2.5 billion senior unsecured increasing-rate note.
Chase is administrative agent. Salomon will serve as syndication agent and co-lead arranger, and DLJ Capital Funding Inc. will serve as documentation agent.
Allied also has commitments from private equity firms such as Blackstone Capital Partners and Apollo Management to purchase $1 billion of convertible preferred stock.