Alliance Laundry upsizes first-lien loan, downsizes second-lien debt

By Sara Rosenberg

New York, Dec. 6 - Alliance Laundry Systems LLC increased its six-year covenant-light first-lien term loan (B2/B) to $375 million from $360 million and decreased its seven-year covenant-light second-lien term loan (Caa2/CCC+) to $110 million from $125 million, according to a market source.

In addition, pricing on the first-lien term loan was reduced to Libor plus 425 basis points from Libor plus 450 bps and a step-down was added to Libor plus 400 bps at 4¾ times leverage, the source said. Pricing on the second-lien term loan was trimmed to Libor plus 825 bps from Libor plus 850 bps.

Furthermore, the original issue discount on the first-lien loan tightened to 99½ from 99 and the discount on the second-lien term loan was revised to 99 from talk of 98 to 981/2, the source continued.

Both term loans still have a 1.25% Libor floor.

As before, the first-lien term loan has 101 soft call protection for one year and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Also included in the company's $560 million credit facility is a $75 million five-year revolver (B2/B).

Recommitments were due at noon ET on Thursday, the source added.

Bank of America Merrill Lynch, BMO Capital Markets Corp., Morgan Stanley Senior Funding Inc., Scotia Capital (USA) Inc. and Fifth Third Securities Inc. are the lead banks on the deal.

Proceeds will be used to refinance existing debt and fund a dividend.

Alliance Laundry is a Ripon, Mass.-based designer, manufacturer and marketer of commercial laundry equipment used in laundromats, multi-housing laundries and on-premise laundries.

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