By Paul A. Harris
St. Louis, Jan. 20 - Alliance Laundry Systems LLC, in conjunction with Alliance Laundry Corp., priced $150 million of eight-year senior subordinated notes (B3/CCC+) at 99.50 with an 8½% coupon to yield 8.589%, according to a syndicate source.
Price talk was 8½% to 8¾%.
Lehman Brothers ran the books for the Rule 144A issue. Scotia Capital was the joint lead manager. RBC Capital Markets and ABN Amro were the co-managers.
Proceeds will be used to help fund the acquisition of Alliance Laundry by Teachers' Private Capital, the private equity arm of the Ontario Teachers' Pension Plan Board, from Bain Capital, and to repay about $280 million of Alliance Laundry's outstanding debt, including the $110 million of its 9 5/8% senior subordinated notes, and its mandatorily redeemable preferred interests.
Alliance Laundry Systems is a Ripon, Wis.-based designer, manufacturer and marketer of commercial laundry equipment.
| Issuer: | Alliance Laundry Systems LLC/Alliance Laundry Corp.
|
| Amount: | $150 million
|
| Maturity: | Jan. 15, 2013
|
| Security description: | Senior subordinated notes
|
| Bookrunner: | Lehman Brothers
|
| Joint lead manager: | Scotia Capital
|
| Co-managers: | RBC Capital Markets, ABN Amro
|
| Coupon: | 8½%
|
| Price: | 99.50
|
| Yield: | 8.589%
|
| Spread: | 454 basis points
|
| Call features: | Callable after Jan. 15, 2009 at 104.25, 102.125, par on and after Jan. 15, 2011
|
| Equity clawback: | Until Jan. 15, 2008 for 35% at 108.50
|
| Trade date: | Jan. 20
|
| Settlement date: | Jan. 27
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Price talk: | 8½%-8¾%
|
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