Coinmach's income deposit securities' units no longer trading; company calls secured notes due 2024

By Devika Patel

Knoxville, Tenn., Nov. 21 - Coinmach Service Corp. announced on Nov. 20 that its class A common shares and its income deposit securities' units will stop trading on the American Stock Exchange at market close. The company also said it will redeem all of its outstanding 11% senior secured notes due 2024 on Dec. 21.

The notes are being redeemed and the securities are being canceled as a result of the company's planned acquisition by an affiliate of Babcock & Brown Ltd.

The notes will be purchased at 105.5% plus interest through Dec. 1, 2009, discounted to the redemption date on a quarterly basis. The exact redemption price will be determined on the third business day before the redemption date.

Holders of Coinmach's income deposit securities will receive a merger consideration of $13.55 in cash for each share of class A common stock underlying the securities and a portion of the redemption price, payable on the redemption date, for each note underlying the securities.

Coinmach is a Plainview, N.Y.-based supplier of outsourced laundry equipment services for multi-family housing properties in North America.

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