Verra Mobility launches $250 million add-on term loan at 99 area OID

By Sara Rosenberg

New York, Nov. 15 – Verra Mobility Corp. launched on Monday its fungible $250 million add-on covenant-lite term loan B due March 26, 2028 with original issue discount talk in the 99 area, according to a market source.

Pricing on the add-on term loan is Libor plus 325 basis points with a 0% Libor floor, in line with existing term loan pricing.

The add-on term loan has 101 soft call protection for six months and amortization of 1% per annum.

BofA Securities Inc. is the lead on the deal.

Commitments are due at noon ET on Friday.

Proceeds from the add-on and $115 million of cash on hand will be used to fund the acquisition of T2 Systems, a provider of parking software and hardware solutions, from Thoma Bravo for $347 million.

Closing is expected in December.

Pro forma for the transaction, secured leverage is expected to be 3.5x, total leverage is expected to be 4.9x and net leverage is expected to be 4.8x based on pro forma LTM EBITDA of $256 million.

Verra is a Mesa, Ariz.-based provider of smart mobility technology solutions.

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