Web Service $235 million credit facility to launch Aug. 7

By Sara Rosenberg

New York, July 29 - Web Service Co. is scheduled to hold a bank meeting on Aug. 7 to launch its proposed $235 million credit facility, according to a market source.

GE Capital is the lead bank on the deal.

The facility consists of a $50 million six-year revolver and a $185 million six-year term loan, with both tranches talked at Libor plus 450 basis points with a 3% Libor floor and an original issue discount of 98, the source said.

Proceeds will be used to help fund the buyout of the company by Code, Hennessy & Simmons LLC.

Senior leverage is around 3.1 times and total leverage is around 4.97 times.

Web Service is a Redondo Beach, Calif., laundry service provider, serving multi-housing locations, including apartment properties, condos, college and university residence halls and military bases.

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