FirstStudent widens OID on $770 million of term loans to 92

By Sara Rosenberg

New York, June 28 – FirstStudent & FirstTransit revised the original issue discount on its non-fungible $720 million incremental term loan B due July 21, 2028 and non-fungible $50 million incremental term loan C due July 21, 2028 to 92 from talk in the range of 94 to 95, according to a market source.

Pricing on the term loans, which are being sold as a strip, remained at SOFR+10 basis points CSA plus 400 bps with a 0.5% floor.

The term loan debt still has a 7.5 bps ESG permanent step-down based on outlined KPI, tested in June 2025, and 101 soft call protection for six months.

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.

Recommitments are due at noon ET on Wednesday, the source added.

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.

FirstStudent 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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