Alston & Bird advised Variant Equity Advisors in connection with the financing of its $271.4 million acquisition of the North American operations of Stagecoach Group plc, consisting of Coach USA, Megabus Canada, and all North American subsidiaries.
Headquartered in Paramus, NJ, Coach USA is a leading provider of passenger transportation and mobility services, including intercity bus, public transit, employee transportation, campus shuttle, and airport transportation. The company operates through a number of marquee brands, including megabus.com, which provides intercity coach services. With more than 4,500 employees and 2,200 buses, Coach USA has an extensive reach throughout the United States and Canada.
The cross-border financing included 73 loan parties (16 guarantors and 57 borrowers) organized in 17 different states and provinces across the United States and Canada. Comprising an asset-based loan with Wells Fargo Bank, N.A., as agent and Wells Fargo Bank, N.A., and MUFG Union Bank, N.A., as lenders, the financing funded a portion of the acquisition’s purchase price and required resolution of a number of issues, including various transportation-related regulatory approvals, the organizational structure of the target entities, the concurrent negotiation and closing of diverse equipment financing facilities, assorted real estate components and related mortgages in multiple jurisdictions, and a complex borrowing base that included, among other assets, more than 1,500 buses in numerous states and provinces.
Advising Variant on the transaction financing was an Alston & Bird team led by partners Kevin Fink, Tara Castillo, Kate Moseley, and Paul Hespel; counsel Stacie Cargill; senior associates Jonathan Forgang, Lindsey Arthur, Kayla Mehring, and David Rutherford; associates Akiba Chonoles, Barbara Bensoussan, and Summer Allen (Finance); partner Clay Littlefield (Tax); and associates Elias de Wit (Real Estate Finance & Investment) and Gerard Hart (Corporate & Business Transactions).