Coinmach Corporation to Refinance Existing Debt; Reports Revenue and EBITDA Guidance.Business Editors CHARLOTTE, N.C.--(BUSINESS WIRE)--Jan. 8, 2002 Coinmach Corporation announced today that it intends to issue $400 million of new senior notes due 2010, in conjunction with its new $395 million senior secured credit facility, subject to customary conditions. Coinmach intends to use the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the offering and borrowings under its new credit facility to refinance existing bank debt and to redeem its existing 11-3/4% Senior Notes due 2005 (including the payment of applicable redemption premium redemption premium See call premium. , accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. and expenses related thereto). Coinmach is the leading supplier of outsourced laundry equipment services for multi-family housing properties in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Coinmach's core business involves leasing laundry rooms A laundry room (also called a utility room) is a room where clothes are washed. In a modern home, a laundry room would be equipped with an automatic washing machine and clothes dryer,and often a large basin, called a laundry tub, for hand-washing delicate articles of clothing such from building owners and property management companies, installing and servicing laundry equipment, collecting revenues generated from laundry machines, and operating retail laundromats. At December 31, 2001, Coinmach owned and operated approximately 835,000 washers and dryers in approximately 80,000 locations located throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . In addition, Coinmach reported revenue and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become guidance for the three month period ended December 31, 2001. Coinmach estimates revenue and EBITDA for the three month period ended December 31, 2001 to be approximately $135 million and $41 million, respectively. Revenue increased by approximately $5 million or 4% for the three months ended December 31, 2001 relative to the prior year's corresponding period, primarily as a result of increased revenue from the existing machine base in the Company's core "route" business, increased revenue from Super Laundry, its distribution business, and increased rental revenue from Appliance Warehouse, its rental division. EBITDA increased by approximately $2 million or 5% for the three months ended December 31, 2001 relative to the prior year's corresponding period, largely due to increases in revenue. Coinmach reported revenue and EBITDA guidance for the nine-month period ended December 31, 2001. Coinmach estimates revenue and EBITDA for the nine-month period ended December 31, 2001 to be approximately $402 million and $125 million, respectively. Revenue increased by approximately $10 million or 3% for the nine months ended December 31, 2001 relative to the prior year's corresponding period, primarily as a result of increased revenue from the existing machine base in the Company's core "route" business combined with increased rental revenue from its Appliance Warehouse "rental" division. EBITDA increased by approximately $1 million or 1% for the nine months ended December 31, 2001 relative to the prior year's corresponding period, largely due to increases in revenue. The new senior notes will be resold to qualified institutional buyers In law, a Qualified Institutional Buyer is a purchaser of securities that is financially sophisticated and is legally recognized by security market regulators to need less protection from sellers than most members of the public. in reliance on Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. under the Securities Act of 1933, as amended. Therefore, the new senior notes may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. This press release does not and will not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Cautionary Note on Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : This statements contained in this press release reflect the Company's current expectations with respect to the future performance of the Company and may constitute "forward-looking statements" within the meaning of the federal securities laws. These statements and the Company's business and prospects are subject to a variety of uncertainties, unknown risks and other factors that are difficult to predict, are beyond the control of the Company and rely upon assumptions that may prove to be inaccurate. Such factors could cause actual results to differ materially from those matters expressed or implied, including, but not limited to, the ability of the Company to obtain capital on acceptable terms; adverse effects of the changing industry environment and increased competition; negative effects of the Company's substantial indebtedness and limitations imposed by restrictive covenants Restrictive covenants Provisions that place constraints on the operations of borrowers, such as restrictions on working capital, fixed assets, future borrowing, and payment of dividends. contained in the Company's debt instruments. These and other risk factors are described in the Company's Securities and Exchange Commission reports, including but not limited to the Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. Report for the fiscal year ended March 31, 2001 and the Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. for the fiscal quarters ended June 30, 2001 and September 30, 2001. The Company undertakes no obligation to update forward-looking statements to reflect developments or information obtained after the date hereof. |
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