Deutsche Bank is holding a bank meeting tomorrow for AMF Bowling Worldwide, following the bankruptcy court's approval of a reorganization plan. The exit financing credit consists of a five-year, $75 million revolver with $25 million drawn at closing, and a $275 million, six-year "B" term loan. Pricing on the revolver and term loan is LIBOR plus 31/ 2% and LIBOR plus 4%, respectively.
Following the reorganization AMF will have a more manageable debt level and an improved capital structure, said a banker. AMF's senior secured lenders will recover about $620 million through an equity, subordinated notes and cash combination. AMF ran into trouble following the Asian debt crisis, with market share crushed in China. Merrell Wreden, director for investor relations for AMF, did not return calls.