Alliance Laundry to tender for 9 5/8% notes with proceeds from new fund

New York, Oct. 1 - Alliance Laundry Systems LLC said it intends to tender for its 9 5/8% senior subordinated notes using the proceeds of a new fund.

The fund, called Alliance Laundry Systems Income Fund, has filed a preliminary prospectus with regulators in Canada to offer units which will pay a monthly distribution. Net proceeds from the initial public offering will be used to acquire an indirect ownership interest in Alliance Laundry.

Alliance Laundry, in turn, will use the proceeds from the sale of the ownership stake to reduce debt, acquire other securities and to provide it with the flexibility to fund future acquisitions and produce development.

The Ripon, Wis. manufacturer of commercial laundry equipment said that specifically it plans a tender offer for its notes. The tender will be subject to the fund completing its IPO and it raising enough from the sale of the ownership interest.

Alliance Laundry Systems Income Fund is not registering its units in the U.S.

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