American Traffic reveals price talk on $425 million in term loans

By Sara Rosenberg

New York, May 15 – American Traffic Solutions disclosed price talk on its $325 million seven-year covenant-light first-lien term loan and $100 million eight-year covenant-light second-lien term loan with its bank meeting on Monday, according to a market source.

The first-lien term loan is talked at Libor plus 450 basis points with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 850 bps with a 1% Libor floor and a discount of 98, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Bank of America Merrill Lynch, BMO Capital Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Morgan Stanley Senior Funding Inc. are the leads on the $425 million in term loans.

Commitments are due on May 24, the source added.

Proceeds will be used to help fund the buyout of the company by Platinum Equity.

American Traffic Solutions is a Mesa, Ariz.-based provider of road safety cameras and toll and violations management solutions.

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