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First Student & First Transit finalizes term loan C at $550 million
By Sara Rosenberg
New York, July 14 – First Student & First Transit wrapped syndication of its seven-year senior secured first-lien term loan C at a size of $550 million, up from a launch size of $525 million, according to a market source.
Pricing on the term loan C and a $1.49 billion seven-year senior secured first-lien term loan B is Libor plus 300 basis points with a 0.5% Libor floor and an original issue discount of 99.5.
The term loans have 101 soft call protection for six months.
During syndication, pricing on the term loan was reduced from Libor plus 325 bps and the discount firmed at the tight end of the 99 to 99.5 talk.
The company’s $2.54 billion of senior secured credit facilities (Ba3/B+/BB+) also include a $500 million revolver.
Barclays, Morgan Stanley Senior Funding Inc., BMO Capital Markets, TD Securities (USA) LLC, Credit Suisse Securities (USA) LLC, RBC Capital Markets, MUFG, BNP Paribas Securities Corp., Citizens Bank, Deutsche Bank Securities Inc., Stifel and Mizuho are the bookrunners on the deal.
As previously reported, allocations went out on Tuesday.
Proceeds from the term loan B and $800 million of senior secured notes will be used to help fund the buyout of the companies by EQT Infrastructure from FirstGroup plc for $4.6 billion, and proceeds from the term loan C will be placed in a specified restricted account for purposes of providing cash collateral against letters of credit.
Closing is expected late this month.
First Student is a Cincinnati-based student transportation service provider. First Transit is a Cincinnati-based public transit management operator.
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