Alliance Laundry to tender for notes, obtain new loan as part of planned IDS, note sale

New York, April 13 - Alliance Laundry Systems LLC plans a tender offer for its $110 million principal amount of 9 5/8% senior subordinated notes due 2008 and to obtain a new credit facility as part of its planned sale of Income Deposit Securities.

Alliance Laundry Holdings Inc., which will become the holding company for Alliance Laundry Systems' operations and subsidiaries, filed an S-1 registration statement with the Securities and Exchange Commission Tuesday for an offering of $375 million of IDS and additional senior subordinated notes.

Each IDS will be made up of one share of class A common stock and a senior subordinated note due 2014. The company will also offer identical notes on a stand-alone basis. From 45 days after the offering, the components parts of the IDS can be traded separately.

CIBC World Markets and Lehman Brothers will be bookrunners for the offerings.

Proceeds from the IDS sale, the new notes and the new credit facility will be used to redeem the 9 5/8% notes in a tender offer and consent solicitation, repay all borrowings under the company's existing credit facility, repay its junior notes, redeem the mandatorily redeemable preferred membership interests in Alliance Laundry Systems held by affiliates of Trust Co. of the West and affiliates of Sankaty Advisors, fund working capital, and to buy back the company's equity investors' remaining equity interests.

Alliance Laundry will not receive any proceeds from exercise of the over-allotment option.

The new credit facility will be with a syndicate of lenders led by CIBC World Markets Corp. and Lehman Brothers Inc. as joint lead arrangers and joint book managers. It will include a revolver and a term loan. No further details were disclosed.

Alliance Laundry is a Ripon, Wis., manufacturer of commercial laundry products.

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