Published on 3/19/2021 in the Prospect News High Yield Daily.
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.
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Amount: | $350 million
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Maturity: | April 15, 2029
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Securities: | Senior notes
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Bookrunners: | BofA Securities Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC and Credit Suisse Securities (USA) LLC
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Co-managers: | Robert W. Baird & Co. Inc., William Blair & Co. LLC, BTIG LLC and CJS Securities Inc.
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Coupon: | 5½%
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Price: | Par
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Yield: | 5½%
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Spread: | 401 bps
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First call: | Make-whole call at Treasuries plus 50 bps until April 15, 2024, then callable at 102.75
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Equity clawback: | 40% at 105.5 until April 15, 2024
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Trade date: | March 19
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Settlement date: | March 26
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Ratings: | Moody's: Caa1
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| S&P: B-
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Distribution: | Rule 144A and Regulation S for life
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Price talk: | 5½% area
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Marketing: | Roadshow
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