Details emerge on Coinmach $400 million IDS, $20 million note offerings

By Paul A. Harris

St. Louis, Aug. 3 - Coinmach Service Corp.'s proposed $400 million offering of Income Deposit Securities (IDS) will be comprised of 22 million class A common shares of stock and $148.5 million of senior secured notes due 2024, according to an S-1 filing Tuesday with the U.S. Securities and Exchange Commission.

The price will be about $15 per IDS.

Separate from the IDS offering, the company plans to sell an additional $20 million of senior secured notes due 2024.

Moody's Investors Service rates the both note offerings Caa1.

Merrill Lynch & Co. will run the books. Jefferies & Co. will be the lead manager. Deutsche Bank Securities, RBC Capital Markets and SunTrust Robinson Humphrey will be co-managers.

The underwriters have the option to purchase up to 3.3 million additional IDS within 30 days at the public offering price less the underwriting discount.

Proceeds will be used to redeem part of Coinmach Corp.'s 9% notes, to repay bank debt and to repurchase class A and class B preferred shares.

Coinmach is a Plainview, N.Y., supplier of coin and card operated laundry equipment.

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