Alliance Laundry $150 million eight-year notes talked to yield 8½%-8¾%, to price Thursday

By Paul A. Harris

St. Louis, Jan. 19 - Price talk on Alliance Laundry Systems LLC's $150 million offering of eight-year senior subordinated notes (B3/CCC+) emerged Wednesday at 8½% to 8¾%, according to an informed source.

The notes are expected to price on Thursday.

Lehman Brothers has the books for the Rule 144A offering.

The notes will be non-callable for four years.

The company will also obtain a $250 million credit facility.

Proceeds will be used to help fund the acquisition of Alliance Laundry by Teachers' Private Capital, the private equity arm of the Ontario Teachers' Pension Plan Board, from Bain Capital, and to repay about $280 million of Alliance Laundry's outstanding debt, including the $110 million of its 9 5/8% senior subordinated notes, and its mandatorily redeemable preferred interests.

Alliance Laundry Systems is a Ripon, Wis.-based designer, manufacturer and marketer of commercial laundry equipment.

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