Variant Equity I, LP, and Project Kenwood Acquistion, LLC-Acquisition of Control-Coach USA Administration, Inc., and Coach USA, Inc., 5802-5804 [2019-03115]

Download as PDF 5802 Federal Register / Vol. 84, No. 36 / Friday, February 22, 2019 / Notices Electronic Comments DEPARTMENT OF STATE • Use the Commission’s internet comment form (http://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File No. SR– PEARL–2019–01 on the subject line. [Public Notice: 10678] Paper Comments ACTION: • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549–1090. All submissions should refer to File No. SR–PEARL–2019–01. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s internet website (http://www.sec.gov/ rules/sro.shtml.) Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission’s Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File No. SR–PEARL–2019–01, and should be submitted on or before March 15, 2019. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.16 Eduardo A. Aleman, Deputy Secretary. [FR Doc. 2019–03037 Filed 2–21–19; 8:45 am] BILLING CODE 8011–01–P 16 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 16:52 Feb 21, 2019 Jkt 247001 Notice of Information Collection Under OMB Emergency Review: Three Information Collections Related to the United States Munitions List, Categories I, II and III; Correction Notice of request for emergency OMB approval and public comment; correction. The Department of State published a Federal Register Notice on February 12, 2019, notifying the public of the Emergency processing and approval of this collection by April 1, 2019. The Notice using Docket Number: DOS–2018–0063 contained an incorrect date when all comments must be received. This document corrects the date to March 14, 2019. FOR FURTHER INFORMATION CONTACT: Direct requests for additional information regarding the collection listed in this notice, including requests for copies of the proposed collection instrument and supporting documents to Andrea Battista who may be reached on 202–663–3136 or at battistaal@ state.gov. SUMMARY: Correction In the Federal Register, published on February 12, 2019, in FR Doc. 2019– 01983, on page 3528, in the first column, the correct date when all comments must be received is March 14, 2019. Anthony M. Dearth Chief of Staff, Directorate of Defense Trade Controls, Department of State. [FR Doc. 2019–03091 Filed 2–21–19; 8:45 am] BILLING CODE 4710–25–P SURFACE TRANSPORTATION BOARD [Docket No. MCF 21084] Variant Equity I, LP, and Project Kenwood Acquistion, LLC— Acquisition of Control—Coach USA Administration, Inc., and Coach USA, Inc. Surface Transportation Board. Notice tentatively approving and authorizing finance transaction. AGENCY: ACTION: On December 20, 2018, Variant Equity I, LP (Variant), and Project Kenwood Acquisition, LLC (collectively, Applicants), both noncarriers, jointly filed an application to acquire from SCUSI Limited 100% of the stock in Coach USA Administration, Inc., a noncarrier that owns 100% of SUMMARY: PO 00000 Frm 00143 Fmt 4703 Sfmt 4703 Coach USA, Inc., another noncarrier, that controls 29 motor passenger carriers that hold federally-issued interstate operating authority. The Board is tentatively approving and authorizing the transaction,1 and, if no opposing comments are timely filed, this notice will be the final Board action. Persons wishing to oppose the application must follow the rules. DATES: Comments must be filed by April 8, 2019. Applicants may file a reply by April 23, 2019. If no opposing comments are filed by April 8, 2019, this notice shall be effective on April 9, 2019. ADDRESSES: Send an original and 10 copies of any comments referring to Docket No. MCF 21084 to: Surface Transportation Board, 395 E Street SW, Washington, DC 20423–0001. In addition, send one copy of comments to Applicants’ Representative: Matthew J. Warren, Sidley Austin LLP, 1501 K Street NW, Washington DC 20005. FOR FURTHER INFORMATION CONTACT: Matthew Bornstein at (202) 245–0385. Assistance for the hearing impaired available through the Federal Information Relay Service (FIRS) at 1– 800–877–8339. SUPPLEMENTARY INFORMATION: Applicants explain that Variant is a private equity firm organized under the laws of the State of Delaware. (Appl. 2.) It controls 100% of the equity and vote of Project Kenwood Acquisition, LLC, which is also organized under the laws of the State of Delaware. Applicants assert that neither Variant nor any entity currently under its control holds motor carrier authority or a U.S. Department of Transportation number or safety rating.2 (Id.) Applicants state that Coach USA, Inc., which is a Delaware corporation, controls 29 motor passenger carriers that hold federally issued interstate operating authority 3 and operate, in total, approximately 2,213 buses.4 1 Due to the partial shutdown of the Federal government from December 22, 2018, through January 25, 2019, the Board was not able to act within the period set forth in 49 U.S.C. 14303(c). On January 28, 2019, Applicants filed a motion seeking expedited review of the application and publication of a notice in the Federal Register. On January 30, 2019, Stagecoach Group plc filed a reply in support of Applicants’ motion to expedite. 2 Applicants state that Variant controls multiple assets, including Curb Mobility, which provides a comprehensive mobility platform that serves taxi and other for-hire ride operators, regulators, service providers, and riders. (Appl. 2.) 3 A 30th Coach USA-owned carrier, Community Transportation, Inc., operates only on intrastate routes in New Jersey. (See id. at 6.) 4 This figure is derived from Exhibit 1 of the verified application, which lists, among other things, the approximate number of buses operated E:\FR\FM\22FEN1.SGM 22FEN1 Federal Register / Vol. 84, No. 36 / Friday, February 22, 2019 / Notices Coach USA, Inc., is a wholly owned subsidiary of Coach USA Administration, Inc., a Nevada corporation. (Id. at 3–4.) All the equity interests in Coach USA Administration, Inc., are held by SCUSI Limited, a public limited holding company organized under the laws of England and Wales. Stagecoach Group plc is the ultimate parent of SCUSI Limited and is organized under the laws of Scotland. (Id. at 3.) 5 The 29 interstate motor carriers are described in Exhibit 1 of the application as follows: 6 • Airport Supersaver Inc., which primarily operates in Illinois; • All West Coachlines, Inc., which primarily operates in California and Nevada; • American Coach Lines of Atlanta, Inc., which primarily operates in Georgia, Florida, Alabama, and South Carolina; • Butler Motor Transit, Inc., which primarily operates in Pennsylvania, New Jersey, New York, and Michigan; • Central Cab Company which primarily operates in Pennsylvania, Ohio, and West Virginia; • Chenango Valley Bus Lines., Inc., which primarily operates in New Jersey, New York, and Pennsylvania; • Community Coach, Inc., which primarily operates in New Jersey, New York, Ohio, and Pennsylvania; • Community Transit Lines, Inc., which primarily operates in New Jersey; • Dillon’s Bus Service, Inc., which primarily operates in Maryland, Virginia, and the District of Columbia; • Elko, Inc., which primarily operates in Nevada; • Hudson Transit Lines, Inc., which primarily operates in New Jersey, New York, and Pennsylvania; • Independent Bus Company, Inc., which primarily operates in New Jersey; • Kerrville Bus Company, Inc., which primarily operates in Texas, Arkansas, and Louisiana; • Lakefront Lines, Inc., which primarily operates in Illinois, Indiana, Ohio, Pennsylvania, Michigan, Tennessee, and New York; • Megabus Northeast, LLC, which primarily operates in Connecticut, the District of Columbia, Georgia, Massachusetts, Maryland, North by each Coach USA carrier with active federal operating authority. 5 The Board has approved several acquisitions by Stagecoach Group plc and Coach USA, Inc., the most recent of which was in Stagecoach Group plc—Acquisition of Control of Assets—American Coach Lines of Atlanta, Inc., MCF 21045 (STB served Aug. 15, 2012). 6 Additional information about the motor carriers, including USDOT numbers and motor carrier numbers, can be found in the application. VerDate Sep<11>2014 16:52 Feb 21, 2019 Jkt 247001 Carolina, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Virginia, West Virginia, and Maine; • Megabus Southeast, LLC, which primarily operates in Alabama, the District of Columbia, Florida, Georgia, Kentucky, Louisiana, North Carolina, Tennessee, and Virginia; • Megabus Southwest, LLC, which primarily operates in Arkansas, Texas, Louisiana, Tennessee, and Missouri; • Megabus West, LLC, which primarily operates in California and Nevada; • Olympia Trails Bus Company, Inc., which primarily operates in New Jersey and New York; • Orange, Newark, Elizabeth Bus, Inc., which primarily operates in New Jersey; • Pacific Coast Sightseeing Tours & Charters, Inc., which primarily operates in California and Nevada; • Powder River Transportation Services, Inc., which primarily operates in Wyoming and Montana; • Rockland Coaches, Inc., which primarily operates in New York and New Jersey; • Sam Van Galder, Inc., which primarily operates in Wisconsin, Illinois, and Minnesota; • Suburban Trails, Inc., which primarily operates in New Jersey and New York; • Transportation Management Services, Inc. (d/b/a Lenzner Coach Lines), which primarily operates in Pennsylvania; • Trentway-Wagar, Inc., which primarily operates in New York and Canada; • Tri-State Coach Lines Inc., is not currently operating; and • Wisconsin Coach Lines, Inc., which primarily operates in Wisconsin and Illinois. Applicants state that the purpose of the transaction is to transfer the ultimate ownership of the 29 carriers from Stagecoach Group plc and SCUSI Limited to Variant. Variant seeks to acquire the carriers as an investment and plans to manage the assets with the goal of continuing to provide safe and reliable motor passenger transportation, while at the same time improving longterm value. (Appl. 1.) Under 49 U.S.C. 14303(b), the Board must approve and authorize a transaction subject to section 14303 that it finds consistent with the public interest, taking into consideration at least: (1) The effect of the proposed transaction on the adequacy of transportation to the public, (2) the total fixed charges that result, and (3) the interest of affected carrier employees. Applicants have submitted information PO 00000 Frm 00144 Fmt 4703 Sfmt 4703 5803 required by 49 CFR 1182.2, including information to demonstrate that the proposed transaction is consistent with the public interest under 49 U.S.C. 14303(b), see 49 CFR 1182.2(a)(7), and a statement that the aggregate gross operating revenues of the involved carriers exceeded $2 million during the preceding 12-month period. See 49 U.S.C. 14303(g).7 Applicants assert that the proposed transaction would have a positive effect on the adequacy of transportation services for the public. They state that, at the current time, Variant has no intention of materially altering the nature, extent, or frequency of the service provided by the 29 motor carriers. (Appl. 12.) Applicants state that the carriers would continue to operate as they have been with their existing names and trade names, but under new ultimate ownership. Applicants further state that Variant would use its management experience to enhance the carriers’ overall financial viability while providing safe and quality service to customers. (Id.) Applicants argue that the proposed transaction would have no negative impact on competition because Variant is not a carrier and does not own or control any carriers. (Id.) They assert that there would be continued competition in each of the categories of service provided by the carriers because they would continue to face actual and potential competition from numerous modes of transportation, including competing bus services, automobiles, and more. (Id. at 12–13.) Applicants state that the proposed transaction would increase fixed charges, in the form of interest expense, because funds would be borrowed to assist in financing the transaction. (Id. at 13.) They claim, however, that such an increase would not affect the provision of transportation services to the public. Applicants also cite to Sureride Charter, Inc.—Acquisition of Control— McClintock Enterprises, Inc., MCF 21077 (STB served Nov. 2, 2017), where the Board approved a transaction envisioning debt financing and the possibility of an increase in interest expenses. Regarding the interests of employees, Applicants claim that there would be no material effect on employee or labor conditions because the proposed transaction does not envision any immediate change in the day-to-day operations of the carriers that could 7 Parties must certify that the transaction involves carriers whose aggregate gross operating revenues exceed $2 million, as required under 49 CFR 1182.2(a)(5). E:\FR\FM\22FEN1.SGM 22FEN1 5804 Federal Register / Vol. 84, No. 36 / Friday, February 22, 2019 / Notices negatively impact employees. (Appl. 14.) The Board finds that the acquisition proposed in the application is consistent with the public interest and should be tentatively approved and authorized. If any opposing comments are timely filed, these findings will be deemed vacated, and, unless a final decision can be made on the record as developed, a procedural schedule will be adopted to reconsider the application. See 49 CFR 1182.6(c). If no opposing comments are filed by the expiration of the comment period, this notice will take effect automatically and will be the final Board action. This action is categorically excluded from environmental review under 49 CFR 1105.6(c). Board decisions and notices are available at www.stb.gov. It is ordered: 1. The proposed transaction is approved and authorized, subject to the filing of opposing comments. 2. If opposing comments are timely filed, the findings made in this notice will be deemed vacated. 3. This notice will be effective April 9, 2019, unless opposing comments are filed by April 8, 2019. 4. A copy of this notice will be served on: (1) The U.S. Department of Transportation, Federal Motor Carrier Safety Administration, 1200 New Jersey Avenue SE, Washington, DC 20590; (2) the U.S. Department of Justice, Antitrust Division, 10th Street & Pennsylvania Avenue NW, Washington, DC 20530; and (3) the U.S. Department of Transportation, Office of the General Counsel, 1200 New Jersey Avenue SE, Washington, DC 20590. Decided: February 15, 2019. By the Board, Board Members Begeman, Fuchs, and Oberman. Jeffrey Herzig, Clearance Clerk. control of Dover and Delaware River Railroad, LLC (DDRR), when DDRR becomes a Class III rail carrier in a related transaction involving DDRR’s lease and operation of 27.2 miles of rail lines owned by Norfolk Southern Railway Company (NSR) and operation of 80.7 miles of rail lines pursuant to a trackage rights agreement among DDRR, New Jersey Transit Corporation, and NSR.1 All of the affected lines are located in the State of New Jersey. The lines over which DDRR will operate connect with lines operated by Dover and Rockaway River Railroad, LCC (Rockaway), another Class III carrier that CAD controls.2 Because all of the carriers involved are Class III carriers, this continuance-in-control exemption is not subject to labor protective conditions. This exemption will be effective on February 25, 2019. Petitions to stay must be filed by February 20, 2019. Petitions to reopen must be filed by March 7, 2019. DATES: Send an original and 10 copies of all pleadings, referring to Docket No. FD 36259, to: Surface Transportation Board, 395 E Street SW, Washington, DC 20423–0001. In addition, one copy of each pleading must be served on Eric M. Hocky, Clark Hill PLC, One Commerce Square, 2005 Market Street, Suite 1000, Philadelphia, PA 19103. ADDRESSES: FOR FURTHER INFORMATION CONTACT: Sarah Fancher, (202) 245–0355. Federal Information Relay Service (FIRS) for the hearing impaired: (800) 877–8339. SUPPLEMENTARY INFORMATION: Additional information is contained in the Board’s decision served on February 15, 2019, which is available at www.stb.gov. SURFACE TRANSPORTATION BOARD Decided: February 14, 2019. By the Board, Board Members Begeman, Fuchs, and Oberman. Tammy Lowery, Clearance Clerk. [Docket No. FD 36259] [FR Doc. 2019–03012 Filed 2–21–19; 8:45 am] [FR Doc. 2019–03115 Filed 2–21–19; 8:45 am] BILLING CODE 4915–01–P BILLING CODE 4915–01–P Kean Burenga and Chesapeake and Delaware, LLC—Continuance in Control Exemption—Dover and Delaware River Railroad, LLC Surface Transportation Board. ACTION: Notice of exemption. AGENCY: The Board is granting an exemption for Kean Burenga (Burenga) and Chesapeake and Delaware, LLC (CAD), both noncarriers, to continue in SUMMARY: VerDate Sep<11>2014 16:52 Feb 21, 2019 Jkt 247001 1 See Dover & Del. River R.R.—Lease with Interchange Commitment & Trackage Rights Exemption—Norfolk S. R.R., FD 36258 (STB served Dec. 20, 2018). 2 Burenga previously sought authority to continue in control of Rockaway once Rockaway became a Class III rail carrier. (See Pet. 2 (citing Burenga— Continuance in Control Exemption—Dover & Rockaway River R.R., FD 36125, slip op. at 1 (STB served June 16, 2017)).) The Board found it unnecessary to resolve the issue of Burenga’s control in that proceeding. PO 00000 Frm 00145 Fmt 4703 Sfmt 4703 SURFACE TRANSPORTATION BOARD [Docket No. AB 312 (Sub-No. 4X); Docket No. AB 1000 (Sub-No. 4X)] South Carolina Central Railroad Company, LLC—Abandonment Exemption—in Terrell County, GA; Georgia Southwestern Railroad, Inc.— Discontinuance Exemption—in Terrell County, GA South Carolina Central Railroad Company, LLC (SCRF), and Georgia Southwestern Railroad, Inc. (GSWR) (collectively, Applicants), have jointly filed a verified notice of exemption under 49 CFR pt. 1152 subpart F— Exempt Abandonments and Discontinuances of Service for SCRF to abandon, and for GSWR to discontinue service over, approximately 1,350 feet of rail line between milepost 72.88 and milepost 72.63 in the Town of Sasser, Terrell County, GA (the Line). The Line traverses U.S. Postal Service Zip Code 39885. Applicants have certified that: (1) No local or overhead traffic has moved over the Line for at least two years; (2) because the Line is not a ‘‘through line,’’ there is no overhead traffic on the Line; (3) no formal complaint filed by a user of rail service on the Line (or by a state or local government entity acting on behalf of such user) regarding cessation of service over the Line either is pending with the Surface Transportation Board (Board) or with any U.S. District Court or has been decided in favor of complainant within the two-year period; and (4) the requirements at 49 CFR 1105.7(c) (environmental report), 49 CFR 1105.12 (newspaper publication), and 49 CFR 1152.50(d)(1) (notice to governmental agencies) have been met. As a condition to these exemptions, any employee adversely affected by the abandonment and discontinuance of service shall be protected under Oregon Short Line Railroad—Abandonment Portion Goshen Branch Between Firth & Ammon, in Bingham & Bonneville Counties, Idaho, 360 I.C.C. 91 (1979). To address whether this condition adequately protects affected employees, a petition for partial revocation under 49 U.S.C. 10502(d) must be filed. Provided no formal expression of intent to file an offer of financial assistance (OFA) 1 has been received, 1 The Board modified its OFA procedures effective July 29, 2017. Among other things, the OFA process now requires potential offerors, in their formal expression of intent, to make a preliminary financial responsibility showing based on a calculation using information contained in the carrier’s filing and publicly available information. See Offers of Financial Assistance, EP 729 (STB served June 29, 2017); 82 FR 30,997 (July 5, 2017). E:\FR\FM\22FEN1.SGM 22FEN1

Agencies

[Federal Register Volume 84, Number 36 (Friday, February 22, 2019)]
[Notices]
[Pages 5802-5804]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03115]


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SURFACE TRANSPORTATION BOARD

[Docket No. MCF 21084]


Variant Equity I, LP, and Project Kenwood Acquistion, LLC--
Acquisition of Control--Coach USA Administration, Inc., and Coach USA, 
Inc.

AGENCY: Surface Transportation Board.

ACTION: Notice tentatively approving and authorizing finance 
transaction.

-----------------------------------------------------------------------

SUMMARY: On December 20, 2018, Variant Equity I, LP (Variant), and 
Project Kenwood Acquisition, LLC (collectively, Applicants), both 
noncarriers, jointly filed an application to acquire from SCUSI Limited 
100% of the stock in Coach USA Administration, Inc., a noncarrier that 
owns 100% of Coach USA, Inc., another noncarrier, that controls 29 
motor passenger carriers that hold federally-issued interstate 
operating authority. The Board is tentatively approving and authorizing 
the transaction,\1\ and, if no opposing comments are timely filed, this 
notice will be the final Board action. Persons wishing to oppose the 
application must follow the rules.
---------------------------------------------------------------------------

    \1\ Due to the partial shutdown of the Federal government from 
December 22, 2018, through January 25, 2019, the Board was not able 
to act within the period set forth in 49 U.S.C. 14303(c). On January 
28, 2019, Applicants filed a motion seeking expedited review of the 
application and publication of a notice in the Federal Register. On 
January 30, 2019, Stagecoach Group plc filed a reply in support of 
Applicants' motion to expedite.

DATES: Comments must be filed by April 8, 2019. Applicants may file a 
reply by April 23, 2019. If no opposing comments are filed by April 8, 
---------------------------------------------------------------------------
2019, this notice shall be effective on April 9, 2019.

ADDRESSES: Send an original and 10 copies of any comments referring to 
Docket No. MCF 21084 to: Surface Transportation Board, 395 E Street SW, 
Washington, DC 20423-0001. In addition, send one copy of comments to 
Applicants' Representative: Matthew J. Warren, Sidley Austin LLP, 1501 
K Street NW, Washington DC 20005.

FOR FURTHER INFORMATION CONTACT: Matthew Bornstein at (202) 245-0385. 
Assistance for the hearing impaired available through the Federal 
Information Relay Service (FIRS) at 1-800-877-8339.

SUPPLEMENTARY INFORMATION: Applicants explain that Variant is a private 
equity firm organized under the laws of the State of Delaware. (Appl. 
2.) It controls 100% of the equity and vote of Project Kenwood 
Acquisition, LLC, which is also organized under the laws of the State 
of Delaware. Applicants assert that neither Variant nor any entity 
currently under its control holds motor carrier authority or a U.S. 
Department of Transportation number or safety rating.\2\ (Id.)
---------------------------------------------------------------------------

    \2\ Applicants state that Variant controls multiple assets, 
including Curb Mobility, which provides a comprehensive mobility 
platform that serves taxi and other for-hire ride operators, 
regulators, service providers, and riders. (Appl. 2.)
---------------------------------------------------------------------------

    Applicants state that Coach USA, Inc., which is a Delaware 
corporation, controls 29 motor passenger carriers that hold federally 
issued interstate operating authority \3\ and operate, in total, 
approximately 2,213 buses.\4\

[[Page 5803]]

Coach USA, Inc., is a wholly owned subsidiary of Coach USA 
Administration, Inc., a Nevada corporation. (Id. at 3-4.) All the 
equity interests in Coach USA Administration, Inc., are held by SCUSI 
Limited, a public limited holding company organized under the laws of 
England and Wales. Stagecoach Group plc is the ultimate parent of SCUSI 
Limited and is organized under the laws of Scotland. (Id. at 3.) \5\
---------------------------------------------------------------------------

    \3\ A 30th Coach USA-owned carrier, Community Transportation, 
Inc., operates only on intrastate routes in New Jersey. (See id. at 
6.)
    \4\ This figure is derived from Exhibit 1 of the verified 
application, which lists, among other things, the approximate number 
of buses operated by each Coach USA carrier with active federal 
operating authority.
    \5\ The Board has approved several acquisitions by Stagecoach 
Group plc and Coach USA, Inc., the most recent of which was in 
Stagecoach Group plc--Acquisition of Control of Assets--American 
Coach Lines of Atlanta, Inc., MCF 21045 (STB served Aug. 15, 2012).
---------------------------------------------------------------------------

    The 29 interstate motor carriers are described in Exhibit 1 of the 
application as follows: \6\
---------------------------------------------------------------------------

    \6\ Additional information about the motor carriers, including 
USDOT numbers and motor carrier numbers, can be found in the 
application.
---------------------------------------------------------------------------

     Airport Supersaver Inc., which primarily operates in 
Illinois;
     All West Coachlines, Inc., which primarily operates in 
California and Nevada;
     American Coach Lines of Atlanta, Inc., which primarily 
operates in Georgia, Florida, Alabama, and South Carolina;
     Butler Motor Transit, Inc., which primarily operates in 
Pennsylvania, New Jersey, New York, and Michigan;
     Central Cab Company which primarily operates in 
Pennsylvania, Ohio, and West Virginia;
     Chenango Valley Bus Lines., Inc., which primarily operates 
in New Jersey, New York, and Pennsylvania;
     Community Coach, Inc., which primarily operates in New 
Jersey, New York, Ohio, and Pennsylvania;
     Community Transit Lines, Inc., which primarily operates in 
New Jersey;
     Dillon's Bus Service, Inc., which primarily operates in 
Maryland, Virginia, and the District of Columbia;
     Elko, Inc., which primarily operates in Nevada;
     Hudson Transit Lines, Inc., which primarily operates in 
New Jersey, New York, and Pennsylvania;
     Independent Bus Company, Inc., which primarily operates in 
New Jersey;
     Kerrville Bus Company, Inc., which primarily operates in 
Texas, Arkansas, and Louisiana;
     Lakefront Lines, Inc., which primarily operates in 
Illinois, Indiana, Ohio, Pennsylvania, Michigan, Tennessee, and New 
York;
     Megabus Northeast, LLC, which primarily operates in 
Connecticut, the District of Columbia, Georgia, Massachusetts, 
Maryland, North Carolina, New Jersey, New York, Ohio, Pennsylvania, 
Rhode Island, Virginia, West Virginia, and Maine;
     Megabus Southeast, LLC, which primarily operates in 
Alabama, the District of Columbia, Florida, Georgia, Kentucky, 
Louisiana, North Carolina, Tennessee, and Virginia;
     Megabus Southwest, LLC, which primarily operates in 
Arkansas, Texas, Louisiana, Tennessee, and Missouri;
     Megabus West, LLC, which primarily operates in California 
and Nevada;
     Olympia Trails Bus Company, Inc., which primarily operates 
in New Jersey and New York;
     Orange, Newark, Elizabeth Bus, Inc., which primarily 
operates in New Jersey;
     Pacific Coast Sightseeing Tours & Charters, Inc., which 
primarily operates in California and Nevada;
     Powder River Transportation Services, Inc., which 
primarily operates in Wyoming and Montana;
     Rockland Coaches, Inc., which primarily operates in New 
York and New Jersey;
     Sam Van Galder, Inc., which primarily operates in 
Wisconsin, Illinois, and Minnesota;
     Suburban Trails, Inc., which primarily operates in New 
Jersey and New York;
     Transportation Management Services, Inc. (d/b/a Lenzner 
Coach Lines), which primarily operates in Pennsylvania;
     Trentway-Wagar, Inc., which primarily operates in New York 
and Canada;
     Tri-State Coach Lines Inc., is not currently operating; 
and
     Wisconsin Coach Lines, Inc., which primarily operates in 
Wisconsin and Illinois.
    Applicants state that the purpose of the transaction is to transfer 
the ultimate ownership of the 29 carriers from Stagecoach Group plc and 
SCUSI Limited to Variant. Variant seeks to acquire the carriers as an 
investment and plans to manage the assets with the goal of continuing 
to provide safe and reliable motor passenger transportation, while at 
the same time improving long-term value. (Appl. 1.)
    Under 49 U.S.C. 14303(b), the Board must approve and authorize a 
transaction subject to section 14303 that it finds consistent with the 
public interest, taking into consideration at least: (1) The effect of 
the proposed transaction on the adequacy of transportation to the 
public, (2) the total fixed charges that result, and (3) the interest 
of affected carrier employees. Applicants have submitted information 
required by 49 CFR 1182.2, including information to demonstrate that 
the proposed transaction is consistent with the public interest under 
49 U.S.C. 14303(b), see 49 CFR 1182.2(a)(7), and a statement that the 
aggregate gross operating revenues of the involved carriers exceeded $2 
million during the preceding 12-month period. See 49 U.S.C. 
14303(g).\7\
---------------------------------------------------------------------------

    \7\ Parties must certify that the transaction involves carriers 
whose aggregate gross operating revenues exceed $2 million, as 
required under 49 CFR 1182.2(a)(5).
---------------------------------------------------------------------------

    Applicants assert that the proposed transaction would have a 
positive effect on the adequacy of transportation services for the 
public. They state that, at the current time, Variant has no intention 
of materially altering the nature, extent, or frequency of the service 
provided by the 29 motor carriers. (Appl. 12.) Applicants state that 
the carriers would continue to operate as they have been with their 
existing names and trade names, but under new ultimate ownership. 
Applicants further state that Variant would use its management 
experience to enhance the carriers' overall financial viability while 
providing safe and quality service to customers. (Id.)
    Applicants argue that the proposed transaction would have no 
negative impact on competition because Variant is not a carrier and 
does not own or control any carriers. (Id.) They assert that there 
would be continued competition in each of the categories of service 
provided by the carriers because they would continue to face actual and 
potential competition from numerous modes of transportation, including 
competing bus services, automobiles, and more. (Id. at 12-13.)
    Applicants state that the proposed transaction would increase fixed 
charges, in the form of interest expense, because funds would be 
borrowed to assist in financing the transaction. (Id. at 13.) They 
claim, however, that such an increase would not affect the provision of 
transportation services to the public. Applicants also cite to Sureride 
Charter, Inc.--Acquisition of Control--McClintock Enterprises, Inc., 
MCF 21077 (STB served Nov. 2, 2017), where the Board approved a 
transaction envisioning debt financing and the possibility of an 
increase in interest expenses.
    Regarding the interests of employees, Applicants claim that there 
would be no material effect on employee or labor conditions because the 
proposed transaction does not envision any immediate change in the day-
to-day operations of the carriers that could

[[Page 5804]]

negatively impact employees. (Appl. 14.)
    The Board finds that the acquisition proposed in the application is 
consistent with the public interest and should be tentatively approved 
and authorized. If any opposing comments are timely filed, these 
findings will be deemed vacated, and, unless a final decision can be 
made on the record as developed, a procedural schedule will be adopted 
to reconsider the application. See 49 CFR 1182.6(c). If no opposing 
comments are filed by the expiration of the comment period, this notice 
will take effect automatically and will be the final Board action.
    This action is categorically excluded from environmental review 
under 49 CFR 1105.6(c).
    Board decisions and notices are available at www.stb.gov.
    It is ordered:
    1. The proposed transaction is approved and authorized, subject to 
the filing of opposing comments.
    2. If opposing comments are timely filed, the findings made in this 
notice will be deemed vacated.
    3. This notice will be effective April 9, 2019, unless opposing 
comments are filed by April 8, 2019.
    4. A copy of this notice will be served on: (1) The U.S. Department 
of Transportation, Federal Motor Carrier Safety Administration, 1200 
New Jersey Avenue SE, Washington, DC 20590; (2) the U.S. Department of 
Justice, Antitrust Division, 10th Street & Pennsylvania Avenue NW, 
Washington, DC 20530; and (3) the U.S. Department of Transportation, 
Office of the General Counsel, 1200 New Jersey Avenue SE, Washington, 
DC 20590.

    Decided: February 15, 2019.

    By the Board, Board Members Begeman, Fuchs, and Oberman.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2019-03115 Filed 2-21-19; 8:45 am]
 BILLING CODE 4915-01-P