RSTW Partners III, L.P. Invests $17 Million in Student Transportation of America, Inc.

Student Transportation of America, Inc. Closes $87 Million Growth Financing Facility

HOWELL, NJ — Student Transportation of America, Inc. (STA), Chairman and CEO, Denis J. Gallagher announced today that the company has completed a new equity and debt financing package totaling $87 million to continue its regional based growth strategy in target markets across the country.

The company engaged CIBC World Markets as agent to provide a private placement offering led by Wynnchurch Capital of Lake Forest, Illinois, a private equity fund with over $200 million of capital under management.  Other equity investors included Rice, Sangalis, Toole & Wilson (RSTW) of Houston, Texas and GE Capital Corp.  Senior Subordinated Notes for the company were fully subscribed by RSTW, a privately held subordinated debt and equity fund with over $870 million of capital under management.  This financing enhances previous equity capital contributions of GTCR Golder Rauner, LLC a private equity firm in Chicago who has sponsored the company since its inception.  Simultaneously, Harris Nesbitt arranged and agented a new $60 million senior credit facility with leading financial institutions including GE Capital Corp., LaSalle Bank and Heller Financial, Inc. 

“We were over-subscribed for this package and were very pleased to have completed this financing in such a difficult market.  It demonstrates our new investors’ confidence in the company’s results and the outstanding management team we have put together”, commented Gallagher.

“We will continue to focus on rural and suburban markets where our tremendous growth potential as a local company, coupled with the resources and expertise of a national company, are a winning combination.  Our Regional operating teams in New England, Pennsylvania, New Jersey, California and Texas are well established and will be expanded through additional acquisitions and contract awards.  We will also continue with our proven success in the privatization of the multi-billion dollar public sector school transportation market.”

Student Transportation of America is now the second-largest private provider of school transportation and management services in the United States.  STA’s senior management team has an average of more than 20 years of experience in the student and passenger transportation industry.  The company was founded in 1997 by industry veteran Denis Gallagher and management in partnership with GTCR Golder Rauner LLC.