Alion Adds $300M to HY Bond Queue


Alion Science and Technology plans to issue $300 million in high yield bonds to pay down its debt, the McLean, Va.-based defense research and development company announced today.

The company wants investors to buy $300 million in senior secured notes due 2014. It plans to use the proceeds to repay all of its outstanding first-lien credit facility debt and pay down existing subordinated notes and warrants.

Credit Suisse is the lead bookrunner for the deal and will begin a road show on Monday, Mar. 8. The company expects the bonds to price by March 11, according to KDP Investment Advisors.

Alion has an outstanding $242 million term loan B that matures in 2013 and $250 million in outstanding 10.25% senior notes due 2015.

There is currently more than $2.3 billion in potential junk bonds in the primary market pipeline. Other companies that are looking to price new debt include Avis Budget Car Rental, which plans to issue $400 million in senior notes due 2018. Price talk on the Avis bonds is between 9.875% and 10.125%. Zayo Group hopes to issue $225 million in senior secured notes due 2017. Price talk on Zayo’s bonds is between 10.5% and 10.75%.