Redflex talks $215 million credit facility at Libor plus 475-500 bps

By Sara Rosenberg

New York, March 24 - Redflex Holdings Ltd. launched its $215 million credit facility on Thursday with price talk of Libor plus 475 basis points to 500 bps with a 1.5% Libor floor and an original issue discount of 981/2, according to a market source.

The facility consists of a $20 million revolver, a $175 million term loan B and a $20 million delayed-draw term loan.

There is no call protection being offered on the term loan debt.

Ratings are B2/B corporate and Ba3/B facility, the source added.

Macquarie Capital (USA) Inc. is the lead bank on the deal.

Proceeds will be used to help fund the buyout of the company by the Carlyle Group and Macquarie Group Ltd. for $2.74 (A$2.70) per share, or about $304 million. The delayed-draw loan will be available for capital expenditures.

The company is also getting a $75 million second-lien term loan that has been placed already.

Closing on the acquisition is expected in June, subject to shareholder and regulatory approval.

Redflex is a South Melbourne, Australia-based manufacturer and operator of highway safety equipment, including digital speed and red-light cameras.

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