American Traffic sets price talk on $1.04 billion in term loans

By Sara Rosenberg

New York, Feb. 13 – American Traffic Solutions (ATS Consolidated Inc.) came out with price talk on its $1.04 billion in term loans in connection with its Tuesday bank meeting, according to a market source.

The $840 million seven-year covenant-light first-lien term loan B is talked at Libor plus 400 basis points to 425 bps with a 0% Libor floor and an original issue discount of 99.5, and the $200 million eight-year covenant-light second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 0% Libor floor and a discount of 99, 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 hard call protection of 102 in year one and 101 in year two.

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

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

Commitments are due at noon ET on Feb. 23, the source added.

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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