American Traffic increases second-lien term loan size to $125 million

By Sara Rosenberg

New York, May 24 – American Traffic Solutions upsized its eight-year covenant-light second-lien term loan to $125 million from $100 million, according to a market source.

Pricing on the second-lien term loan is still Libor plus 850 basis points with a 1% Libor floor and an original issue discount of 98, and the loan still has call protection of 103 in year one, 102 in year two and 101 in year three.

As before, the company is also getting a $325 million seven-year covenant-light first-lien term loan priced at Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99, that includes 101 soft call protection for six months.

Another change made was that the 12-month MFN sunset was eliminated, the source said.

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 term loans.

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

Due to the second-lien loan upsizing, the amount of equity being used for the transaction is being reduced, the source added.

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

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