Allegheny Beverage Corp. said yesterday it is restructuring the previously announced sale of its Allegheny Pepsi-Cola Bottling Co. subsidiary to an employe stock ownership plan.
The corporation will arrange the entire $185 million in financing rather than raise part of it through a third party. Originally, part of the money was to be borrowed from Santa Fe Associates Inc., which is primarily owned by nine neighboring Pepsi franchises.
Under the earlier arrangement, Santa Fe was to have gained a warrant that, if exercised, would give it part ownership of the bottling company. Allegheny's financial advisers recommended eliminating the third party for tax and legal reasons, said Harry J. Conn, senior vice president of the corporation.
Under the new arrangement, the bottling company will borrow $185 million from banks alone. As planned in the old arrangement, the bottling company will pay $175 million to the beverage corporation and will use $10 million to refinance part of its debt.
The closing transaction is scheduled for early March.
Allegheny is negotiating the terms of a new loan to provide the funds necessary to acquire Servomation Corp. for $225 million. With that transaction, scheduled for March 15, Allegheny will become a service company with principal operations in coin-operated laundries, building maintenance and office furniture retailing.