Coinmach ups term B to $795 million, flexes to Libor plus 325 bps

By Sara Rosenberg

New York, May 7 - Coinmach Corp. lifted its 61/2-year covenant-light first-lien term loan (B2/B+) to $795 million from $770 million and lowered pricing to Libor plus 325 basis points from talk of Libor plus 350 bps to 375 bps, according to a market source.

Also, the original issue discount firmed at 991/2, the tight end of the 99 to 99½ talk, the source said.

The loan still has a 1% Libor floor and 101 soft call protection for six months.

The company's now $1,195,000,000 credit facility, up from $1.17 billion, also includes a $75 million five-year revolver (B2/B+) and a $325 million seven-year covenant-light second-lien term loan that has already been placed with the sponsor and friends and family of the sponsor.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., KeyBanc Capital Markets LLC, Credit Suisse Securities (USA) LLC and UBS Investment Bank are leading the first-lien debt, and Deutsche Bank is the lead on the second-lien debt.

Proceeds will be used to help fund the buyout of the company by Pamplona Capital Management and the funds raised through the term loan upsizing will be used to add cash to the balance sheet.

Coinmach is a laundry equipment service provider.

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