Verra Mobility starts roadshow for $350 million eight-year notes; initial talk mid-5% area

By Paul A. Harris

Portland, Ore., March 15 – Verra Mobility Corp. and VM Consolidated, Inc. began a roadshow on Monday for a $350 million offering of eight-year senior notes (expected ratings Caa1/B-), according to market sources.

Initial guidance has the notes coming in the mid-5% area, a trader said.

The Rule 144A and Regulation S deal, which was scheduled to kick off on a Monday morning conference call with investors, is set to be marketed on a roadshow through Thursday.

BofA Securities Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and Credit Suisse Securities (USA) LLC are the joint bookrunners. Robert W. Baird & Co. Inc., William Blair & Co. LLC, BTIG LLC and CJS Securities Inc. are the co-managers.

The notes become callable after three years at par plus 50% of the coupon. They feature a three-year 40% equity clawback at par plus the coupon and a 101% poison put.

The Mesa, Ariz.-based provider of smart mobility technology solutions plans to use the proceeds to repay certain of its existing B-1 term loans, as well as to finance the acquisition of Redflex Holdings Ltd., and for general corporate purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.