Alion to start roadshow Monday for $300 million notes, warrants sale

By Paul A. Harris

St. Louis, March 5 - Alion Science and Technology Corp. will begin a roadshow on Monday for its $300 million offering of senior secured notes due November 2014, according to an informed source.

The notes come with detachable warrants to purchase the company's common stock.

The Rule 144A and Regulation S with registration rights deal is expected to price during the March 8 week.

Credit Suisse has the books.

The notes come with three years of call protection. However 10% of the issue may be called annually at 103.

The deal also features a change-of-control put at 101%.

Proceeds will be used to repay the company's first-lien credit facility and to take out its subordinated notes and warrants.

Alion will also put in place a new $25 million revolving credit facility to replace its existing revolver.

The company is a McLean, Va., technology solutions provider delivering technical expertise and operational support to the Department of Defense.

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