By Paul A. Harris
St. Louis, May 1 - Atlantic Express Transportation Corp. priced an upsized $185 million issue of six-month Libor plus 725 basis points five-year senior secured floating-rate notes (Caa1/B-) at 98.50 on Tuesday, according to an informed source.
The issue, which was upsized from $165 million, had been talked at six-month Libor plus 725 to 750 bps with a reoffer price of 98.00 to 98.50. Hence it priced tight to talk, both with respect to the coupon and the reoffer price.
Jefferies & Co. led the Rule 144A with registration rights and Regulation S deal, which generated $182.225 million of proceeds.
Proceeds will be used to refinance existing debt, including the company's 12% senior secured notes due 2008 and its senior secured floating-rate notes due 2008, and for general corporate purposes.
Atlantic Express Transportation is a Staten Island, N.Y., provider of student transportation.
| Issuer: | Atlantic Express Transportation Corp.
|
| Face amount: | $185 million (increased from $165 million)
|
| Proceeds: | $182.225 million
|
| Maturity: | April 15, 2012
|
| Security description: | Senior secured floating-rate notes
|
| Bookrunner: | Jefferies & Co.
|
| Coupon: | Six-month Libor plus 725 bps
|
| Price: | 98.50
|
| Call features: | Callable on May 15, 2008 at 103, 102,101, par on or after May 15, 2011
|
| Equity clawback: | Until May 15, 2008 for 35% at par plus applicable coupon
|
| Change-of-control put: | 101
|
| Trade date: | May 1
|
| Settlement date: | May 15
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | 725 to 750 bps at 98.00 to 98.50
|
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