CSC ServiceWorks launches $460 million add-on term B at 99 area OID

By Sara Rosenberg

New York, Oct. 31 - CSC ServiceWorks Inc. (Coinmach) launched on Thursday its $460 million incremental term loan B with original issue discount talk in the 99 area, according to a market source.

Pricing on the incremental loan is Libor plus 325 basis points with a 1% Libor floor, in line with existing term loan B pricing.

The add-on loan has 101 soft call protection for six months from funding, the source said.

Commitments are due on Nov. 8.

Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of Mac-Gray Corp. for $21.25 per share, or about $524 million.

Closing is expected in the first half of 2014, subject to the adoption of the acquisition agreement by Mac-Gray's stockholders, regulatory approval and other customary conditions.

CSC is a Plainview, N.Y.-based provider of multi-family housing and commercial laundry solutions and air vending services. Mac-Gray is a Waltham, Mass.-based provider of laundry facilities management services.

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