Alion intends to issue units consisting of $300 million aggregate principal amount of senior secured notes due November 2014 and warrants to purchase shares of Alion common stock.
The firm expects the units will include Senior Secured Notes issued at a discount to the face amount of the notes and guaranteed by certain subsidiaries of Alion. They also propose to enter contemporaneously with the issuance of the units into a new $25 million revolving credit facility maturing August 2014 which will replace Alion’s existing revolver.
Proceeds from the offering will be used to repay all amounts outstanding under the company’s first-lien credit facility, extinguish existing subordinated notes and warrants, and pay related transaction fees and expenses.
