AMF Bowling seeks credit facility via CSFB and Merrill to support LBO

By Sara Rosenberg

New York, Dec. 4 - AMF Bowling Worldwide Inc. is expected to obtain a new credit facility to help support its leveraged buyout by an affiliate of Code Hennessy & Simmons LLC, with Credit Suisse First Boston and Merrill Lynch acting as joint lead arrangers on the deal, according to a syndicate document.

All other details on the debt financing are still to be determined.

Under the terms of the merger agreement, AMF shareholders will receive $25 in cash for each common share. The cash consideration paid to AMF shareholders may be increased by $0.01 per share per day under certain circumstances, if the merger has not closed by a date to be determined.

In addition, following the consummation of the merger, the holders of any unexercised AMF Series A warrants will be entitled to receive the difference between the merger consideration and the exercise price.

The leveraged buyout is subject to approval by the shareholders of AMF at a special meeting, expiration of the Hart-Scott-Rodino Act waiting period and other customary conditions. In addition, the closing of the transaction is subject to Code Hennessy & Simmons' ability to obtain financing to consummate the transaction, a company news release previously said.

The transaction is expected to close in the first quarter of calendar 2004.

AMF is a Richmond, Va., owner and operator of bowling centers and manufacturer and marketer of bowling and billiards products.

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