Coinmach sets $13.50-$15.00 price range for $383.15 million income securities

By Paul A. Harris

St. Louis, Sept. 27 - Coinmach Service Corp. plans to sell about $383.15 million of Income Deposit Securities (IDS), the company said in an S-1 document filed Monday with the Securities and Exchange Commission.

The offering consists of about 21.05 million IDS valued at between $13.50 and $15.00 each.

The IDS will be comprised of a share of class A common stock and a senior secured note due 2024.

Approximately $7.84 is allocated to each share of class A common stock, and $6.41 is allocated to each note.

The total size of the note offering is $135 million, which has been decreased from the $148.5 million announced in earlier filings with the SEC.

The company also plans to sell a separate third-party $20 million offering of senior secured notes due 2024. The third-party note offering is contingent upon the completion of the IDS sale.

Moody's has assigned a rating of Caa1 to both prospective issues of notes.

Merrill Lynch & Co. has the books. Citigroup, Jefferies & Co., Deutsche Bank Securities, RBC Capital Markets and SunTrust Robinson Humphrey are co-managers

According to earlier documents filed with the SEC, the company intends to use the proceeds to redeem part of Coinmach Corp.'s 9% notes as well as to repay bank debt and repurchase class A and class B preferred shares.

The company has applied to list the income securities on the American Stock Exchange under the ticker DRY.

The issuer is a Plainview, N.Y., supplier of coin and card operated laundry equipment.

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