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American Traffic tightens pricing on $1.04 billion in term loans
New York, Feb. 23 – American Traffic Solutions (ATS Consolidated Inc.) tightened pricing talk on its $1.04 billion in term loans, according to a market source.
The $840 million seven-year covenant-light first-lien term loan B is priced at Libor plus 375 basis points, tighter than talk for a coupon of Libor plus 400 bps to 425 bps.
The first-lien loan continues to have a 0% Libor floor and an original issue discount of 99.5.
Meanwhile the $200 million eight-year covenant-light second-lien term loan is priced at Libor plus 775 bps, tighter than talk for a rate of Libor plus 800 bps to 825 bps.
The 0% Libor floor and discount of 99 is unchanged on this tranche, 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 were due at 10:30 a.m. ET on Friday, moved up slightly from the original deadline of 12 p.m. ET, the source added.
Allocation was planned for Friday afternoon.
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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