AMF Bowling to offer $150 million high-yield bonds

By Sara Rosenberg

New York, Jan. 30 - AMF Bowling Worldwide Inc. will offering $150 million of high-yield senior subordinated notes that along with bank financing will be used to funds its leveraged buyout by an affiliate of Code Hennessy & Simmons LLC.

Merrill Lynch and Credit Suites First Boston will handle the transaction. Other details of the bond offering were not immediately available.

On Friday, timing and structure emerged on AMF Bowling Worldwide's bank financing with the bank meeting scheduled for Thursday and the total proposed senior secured credit facility (B1) deal size set at $175 million, according to a market source. Merrill Lynch and Credit Suisse First Boston are the lead banks on the deal with Merrill listed on the left.

The facility consists of a $40 million five-year revolver and a $135 million 51/2-year term loan B, according to the source. Price talk is expected to be available early next week.

Proceeds, combined with proceeds from the proposed $150 million high-yield bond offering, will be used to help support the previously announced leveraged buyout by an affiliate of Code Hennessy & Simmons.

Under the terms of the merger agreement, AMF shareholders will receive $25 in cash for each common share. The cash consideration paid to AMF shareholders may be increased by $0.01 per share per day under certain circumstances if the merger has not closed by a date to be determined. In addition, following the consummation of the merger, the holders of any unexercised AMF Series A warrants will be entitled to receive the difference between the merger consideration and the exercise price.

The LBO is subject to approval by the shareholders of AMF at a special meeting, expiration of the Hart-Scott-Rodino Act waiting period and other customary conditions. In addition, the closing of the transaction is subject to Code Hennessy & Simmons' ability to obtain financing, a company news release previously said.

The transaction is expected to close in the first quarter of calendar 2004.

AMF is a Richmond, Va., owner and operator of bowling centers and manufacturer and marketer of bowling and billiards products.

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