Coinmach launches $125 million add-on term loan at discount of 99.03

By Sara Rosenberg

New York, March 3 – Coinmach (CSC Serviceworks) launched on Tuesday its $125 million add-on first-lien covenant-light term loan due November 2019 with original issue discount talk of 99.03, according to a market source.

The add-on term loan is priced at Libor plus 325 basis points with a 1% Libor floor, in line with the existing first-lien term loan.

Amortization on the add-on term loan is 1% per annum.

Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are the bookrunners on the deal.

Proceeds will be used to pay down revolver borrowings and for general corporate purposes, including potential tuck-in acquisitions.

With this transaction, the company is amending its existing credit facility.

Commitments and amendment consents are due on Friday, the source said.

Lenders are being offered a 12.5 bps amendment fee.

Coinmach is a laundry equipment service provider.

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