Case Summary: Transportation Management Services

Transportation Management Services

$33 million senior credit facility

Overview

Transportation Management Services (TMS), headquartered in Sandy Springs, MD, is a leading transportation management firm and provides transportation services through its two primary divisions: (i) Logistics Operations which provides transportation planning and operational support to state and federal government agencies as well as a wide range of private companies for corporate events, trade shows, sporting events and cruise lines (ii) Bus Operations which provides shuttle services and local sightseeing and is a Top 10 bus operator with over 250 vehicles.

Challenge

Coach America Holdings, Inc., the largest tour, contract and charter bus operator and second largest motor coach service provider in the U.S. surface transportation industry, filed for Chapter 11 bankruptcy protection in January 2012 due to a significant debt burden accumulated after multiple acquisitions.  TMS saw an opportunity to enhance their business through combining components of Coach’s rolling stock with their existing network as well as leverage their sales and customer service best practices.  TMS had the opportunity to bid on Coach America’s intra-city divisions and required financing to complete the acquisition.

Solution

Crystal Financial underwrote a $33 million senior secured credit facility consisting of a $10 million revolver and a $23 million term loan.  The Company’s extensive fleet of motor coach buses as well as other rolling stock passenger vehicles served as the primary collateral for the term loan while the revolver was structured against a highly diversified pool of accounts receivable. 
 
With the completion of this acquisition, TMS is now positioned as the largest privately owned and the third largest overall motor coach company in the U.S.

“There are very few financial partners who could have navigated this transaction with us so well. This acquisition will enable us to deliver on our plans to expand our presence in key transportation markets and grow our overall service offering. The Crystal team was flexible and creative throughout the expedited diligence and closing process."
Frank Sherman, Chairman and CEO