American Traffic to launch $1.04 billion in term loans on Tuesday

By Sara Rosenberg

New York, Feb. 9 – American Traffic Solutions (ATS Consolidated Inc.) will hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch $1.04 billion in term loans, according to a market source.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., BMO Capital Markets, Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are the lead arrangers on the deal.

The debt consists of an $840 million seven-year covenant-light first-lien term loan B and a $200 million eight-year covenant-light second-lien term loan, the source said.

Amortization on the first-lien term loan is 1% per annum. There is no amortization on the second-lien term loan.

Proceeds will be used to finance the acquisition of Highway Tolling Administration and to refinance existing debt.

American Traffic is a provider of traffic safety technology to government clients and toll management, toll insurance, violation management and title and registration services to rental car and fleet management companies.

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