Angelica details $133 million credit facility for purchase by Lehman

By Sara Rosenberg

New York, June 11 - Angelica Corp. came out with details on its proposed $133 million senior secured credit facility that will be used to help fund its buyout by a company formed by Lehman Brothers Merchant Banking Partners IV LP, according to a PREM14A recently filed with the Securities and Exchange Commission.

Regions Bank is the lead bank on the deal.

The five-year facility consists of a $100 million revolver expected at initial pricing of Libor plus 225 basis points and a $33 million term loan expected at initial pricing of Libor plus 250 bps, the filing said.

Under the transaction agreement, Lehman is purchasing the company for $22 per share in cash.

Other acquisition financing will come from $135.2 million in equity and $90 million of 15% seven-year senior unsecured subordinated notes, of which up to 3% can be PIK, committed by Apollo Investment Corp.

The buyout is expected to close in late summer, subject to approval by Angelica shareholders, the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and satisfaction of other customary closing conditions.

Angelica is a Chesterfield, Mo.-based provider of textile rental and linen management services.

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