New Issue: Alion Science prices $310 million notes and warrants units

By Paul A. Harris

St. Louis, March 11 - Alion Science and Technology Corp. priced a slightly upsized $310 million issue of notes and warrants units on Thursday, according to an informed source.

The units are comprised of a 12% senior secured note and detachable warrants to purchase the company's common stock.

The notes, which were priced at 97.5, will pay a 10% cash coupon. The remaining 2% of the coupon will be paid in-kind.

Credit Suisse ran the books for the deal, which was upsized from $300 million.

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

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

Issuer:	Alion Science and Technology Corp.
Face amount:	$310 million, upsized from $300 million
Proceeds:	$302.25 million
Maturity:	Nov. 1, 2014
Securities:	Units consisting of senior secured note and detachable warrants to purchase common stock
Bookrunner:	Credit Suisse
Coupon:	12% (10% cash and 2% PIK)
Price:	97.5
Call features:	Callable from April 1, 2013 to Sept. 30, 2013 at 105, Oct. 1, 2013 to March 31, 2014 at 103, April 1, 2014 to maturity at par
Special call:	10% of the notes ($31 million) may be called once during each 12-month period prior to April 1, 2013 at 103
Trade date:	March 11
Settlement date:	March 22
Ratings:	Moody's: B1
	Standard & Poor's: B
Distribution:	Rule 144A/Regulation S with registration rights
Price talk:	10% cash coupon, 2% PIK coupon, at a discount to yield approximately 13%

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