FirstStudent to launch $770 million of term loans on Thursday

By Sara Rosenberg

New York, June 15 – FirstStudent & FirstTransit is scheduled to hold a lender call at 10:30 a.m. ET on Thursday to launch $770 million of incremental term loans, according to a market source.

Barclays, Morgan Stanley Senior Funding Inc., BMO Capital Markets, RBC Capital Markets, Jefferies LLC, Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC, Citizens Bank, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., MUFG and Stifel are the joint bookrunners on the deal. Barclays is the administrative agent.

The debt consists of a nonfungible $720 million term loan B due July 21, 2028 and a nonfungible $50 million term loan C due July 21, 2028, which will trade as a strip, the source said.

The term loans have 101 soft call protection for six months.

Proceeds will be used with $140 million of sponsor cash equity, $140 million of PIK preferred equity and $100 million of PIK seller notes to fund the acquisition of Total Transportation Corp.

Closing is expected by the end of summer.

First Student is a Cincinnati-based provider of student transportation and public transit management and contracting services. Total Transportation is a Brooklyn, N.Y.-based provider of general and special education student transportation, paratransit and charter services.

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