Alliance Laundry to launch $350 million credit facility on Thursday

By Sara Rosenberg

New York, March 14 - Alliance Laundry Systems LLC is scheduled to hold a bank meeting on Thursday to launch a proposed $350 million five-year credit facility, according to an informed source.

Bank of America Merrill Lynch, BMO Capital Markets Corp., Morgan Stanley Senior Funding Inc. and Fifth Third Securities Inc. are the co-arrangers on the deal, with Bank of America the left lead.

The facility consists of a $75 million revolver and a $275 million term loan A, the source said.

Proceeds will be used to refinance an existing $60 million revolver due September 2015 and a $243 million term loan B due September 2016, to pay a special dividend and for other general corporate purposes.

The term loan B being taken out is priced at Libor plus 450 basis points with a 1.75% Libor floor and was sold at an original issue discount of 99 when obtained in 2010.

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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