latest-news-headlines Market Intelligence /marketintelligence/en/news-insights/latest-news-headlines/alliance-laundry-systems-completes-1-325b-tlb-tight-to-talk-terms-60570556 content esgSubNav
In This List

Alliance Laundry Systems completes $1.325B TLB tight to talk; terms

Blog

Spotlight on sustainability: How banks can overcome the challenges of achieving net-zero emissions by 2050

Blog

Global M&A by the Numbers: Q3 2022

Blog

Insight Weekly: US election scenarios; borrowing costs rise; commercial REIT fears

Podcast

Street Talk | Episode 100 - KBW CEO offers optimism for bears fearful of bank liquidity, credit


Alliance Laundry Systems completes $1.325B TLB tight to talk; terms

Alliance Laundry Systems LLC has completed its $1.325 billion covenant-lite term loan B due 2027 at pricing of L+350, with a 0.75% Libor floor and an original issue discount, or OID, of 99.25 via a UBS-led arranger group, according to sources. Pricing came tight to talk and the loan was upside by $75 million. Proceeds will be used to refinance debt and to fund a distribution for the repurchase of a portion of preferred equity. Financing also includes a $125 million revolving credit facility due 2025 with a springing first-lien net leverage covenant. Alliance Laundry Systems, based in Ripon, Wis., designs, manufactures and markets commercial laundry equipment for use in laundromats, multi-housing laundries and on-premise laundries. Alliance is a portfolio company of BDT Capital Partners since 2015. Terms:

Borrower Alliance Laundry Systems
Issue $1.325 billion term loan B
UoP Refinancing, redeem preferred equity
Spread L+350
LIBOR floor 0.75%
Price 99.25
Tenor 7-year
YTM 4.45%
Four-year yield 4.53%
Call protection 101 soft call for 6 months
Corporate ratings B/B2
Facility ratings B/B2
Recovery ratings 3
Financial covenants None
Arrangers UBS/BMO/BofA/Citi
Co-manager JPM
Admin agent UBS
Px Talk L+375-400/0.75%/99
Sponsor BDT Capital Partners
Notes Upsized by $75 million.