Stagecoach has raised $150m (£93.6m) through the issue of debt to cover the cost of buying nine parts of Coach America. The firm said it had issued 10-year notes in a private placement transaction with US investors.
The money will help repay bank loans which were initially used to finance the purchase in July. They included operations in Texas and California. Stagecoach paid out a cash sum of $134.2m (£86.3m) for the businesses and also bought 12 coaches $2.9m (£1.9m).
Coach America was placed under Chapter 11 bankruptcy protection in January. At the time the deal was announced in May, Stagecoach said the businesses it was acquiring would provide depot infrastructure, enabling it to expand Megabus.
Group Finance Director Martin Griffiths said: “We’re pleased by the successful issue of these 10-year notes, which was substantially oversubscribed by investors. We believe the level of support from investors for this issue underlines the group’s strong financial position and positive prospects.”
