New Issue: Verra Mobility sells $350 million eight-year notes at par to yield 5½%

By Paul A. Harris

Portland, Ore., March 19 – Verra Mobility Corp. and VM Consolidated, Inc. priced a $350 million issue of eight-year senior notes (Caa1/B-) at par to yield 5½% on Friday, according to market sources.

The yield printed in the middle of yield talk in the 5½% area. Initial guidance was in the mid-5% area.

BofA Securities Inc. was at the left of a syndicate of bookrunners that also included Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and Credit Suisse Securities (USA) LLC.

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.

Issuer:	VM Consolidated, Inc.
Amount:	$350 million
Maturity:	April 15, 2029
Securities:	Senior notes
Bookrunners:	BofA Securities Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and Credit Suisse Securities (USA) LLC
Co-managers:	Robert W. Baird & Co. Inc., William Blair & Co. LLC, BTIG LLC and CJS Securities Inc.
Coupon:	5½%
Price:	Par
Yield:	5½%
Spread:	401 bps
First call:	Make-whole call at Treasuries plus 50 bps until April 15, 2024, then callable at 102.75
Equity clawback:	40% at 105.5 until April 15, 2024
Trade date:	March 19
Settlement date:	March 26
Ratings:	Moody's: Caa1
	S&P: B-
Distribution:	Rule 144A and Regulation S for life
Price talk:	5½% area
Marketing:	Roadshow

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