Alliance Laundry seeks amendment to waive defaults, revise leverage ratio, up pricing

By Sara Rosenberg

New York, Sept. 5 - Alliance Laundry Holdings LLC is seeking an amendment to its senior credit facility that would waive the default resulting from the company's inability to deliver June financial statements on time, waive any default arising from potential restatements, increase the consolidated leverage ratio and increase pricing, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

The waiver of any default arising from potential restatements applies to financial statements for the fiscal year ended Dec. 31, 2006 and the fiscal quarters ended March 31, 2006, June 30, 2006, Sept. 30, 2006 and March 31.

The consolidated leverage ratio would be increased to 6.00 to 1.00 for the fiscal period ended June 30 from 5.75 to 1:00.

Pricing on the credit facility would be increased by 25 basis points.

Furthermore, 101 call protection for one year against a refinancing would be added to the term loan.

The company expects the amendment and waiver to become effective on Sept. 10.

The waiver would be in affect until Nov. 13.

Lehman Brothers is the administrative agent on the deal.

Alliance Laundry is a Ripon, Wis.-based maker of commercial laundry equipment.

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