Alliance Laundry $160 million credit facility launches

By Sara Rosenberg

New York, June 2 - Alliance Laundry Systems LLC held a bank meeting on Wednesday for its proposed $160 million credit facility (B2/B), according to a market source. CIBC World Markets Corp. and Lehman Brothers Inc. are joint lead arrangers and joint book managers on the deal, with CIBC listed on the left.

The facility consists of a $50 million revolver with an interest rate of Libor plus 375 basis points and a $110 million term loan B with an interest rate of Libor plus 375 basis points, the source said.

Proceeds from the credit facility, combined with proceeds from an Income Deposit Securities sale and notes offering, will be used to redeem the company's 9 5/8% notes in a tender offer and consent solicitation, repay all borrowings under the company's existing credit facility, repay its junior notes, redeem the mandatorily redeemable preferred membership interests in Alliance Laundry Systems held by affiliates of Trust Co. of the West and affiliates of Sankaty Advisors, fund working capital, and buy back the company's equity investors' remaining equity interests.

Alliance Laundry is a Ripon, Wis., manufacturer of commercial laundry products.

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