Deutsche Bank and JPMorgan last Thursday launched syndication of a refinancing for Coinmach Service Corp. The deal consists of a $75 million revolver and a $570 million term loan. Pricing on the term loan is LIBOR plus 2 3/4% and LIBOR plus 3% on the revolver. The term loan will refinance about $230 million of existing term debt, with the rest retiring 9% senior notes due 2010, the company writes in a press release. Private equity firm GTCR Golder Rauner is a majority investor.
In another release, the company announced its intent to do a public offering of about $100 million of Class A common stock in the first quarter of 2006. The proceeds will be used for general corporate purposes, which could include potential acquisitions and repurchases of outstanding indebtness.
Headquartered in Plainview, N.Y., Coinmach provides laundry equipment services in North America through its operating companies: Coinmach, Appliance Warehouse of America and Super Laundry. Bob Doyle, senior v.p., cfo, treasurer and secretary, could not be reached. Bruce Rauner, a principal at GTCR, was traveling and could not be reached.