Verra Mobility talks $350 million eight-year senior notes in 5½% area; pricing Friday

By Paul A. Harris

Portland, Ore., March 18 – Verra Mobility Corp. and VM Consolidated, Inc. talked a $350 million offering of eight-year senior notes (Caa1/B-) to yield in the 5½% area, according to market sources.

Official talk comes in line with initial guidance in the mid-5% area.

Books close at 10:30 a.m. ET on Friday, and the Rule 144A and Regulation S deal is set to price thereafter.

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.

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