Metropolis Loan to Refi Private Credit Debt Struggles as Investors Question AI Tailwinds, EBITDA Adjustments

Investors looking at parking lot AI solutions developer Metropolis Technologies’ $1.1 billion loan refinancing its private debt are skeptical about participating in the deal considering its niche sector along with questionable EBITDA figures, according to sources.

Price talk on the JPMorgan-led seven-year deal is coming at SOFR+425 bps to 450 bps and 99 OID. Commitments were due on Oct. 16, but final pricing has yet to come in. Investors expected Metropolis’ loan price would widen to SOFR+500 bps to reach deal size.

Multiple loan investors looking at Metropolis’ offering declined to invest, noting that the company operates in a niche parking lot operations sector and it has faced challenges utilizing AI in its operations.

Metropolis’ reported EBITDA is $29.5 million while its run-rate adjusted EBITDA they are marketing the loan off of is $209 million, implying leverage of approximately 6x, sources noted. One loan investor said that based on these EBITDA figures alone, it was an easy pass for him.

Proceeds from Metropolis’ loan, along with a $150 million revolving credit facility and $342 million of series D preferred stock, will be used to refinance Metropolis’ existing private credit debt and redeem a portion of its series C senior preferred stock, according to an S&P note.

Metropolis’ deal falls into a similar category as a few recent primary loan deals that received lukewarm responses, and in some cases, pulled from the market. Within the last month, pharmaceutical company Mallinckrodt-Endo pulled its $1.5 billion loan, while chemical producer Nouryon did the same with its dual-currency $5.8 billion loan, Octus reported.

Metropolis acquired computer vision developer Oosto for $125 million in January 2025, according to third party press reports.

In 2023, Metropolis entered into an agreement to acquire mobility technology developer SP Plus for $1.5 billion, according to a press release. The deal was financed with $1.05 billion in Series C preferred stock and $550 million in debt financing, each provided on a committed basis by Eldridge Industries and other institutions, according to another press release.

Moody’s and S&P assigned Metropolis B3/B- ratings to the company and B3/B- ratings to the proposed loan.

S&P’s stable outlook on the company reflects its “expectation that Metropolis will continue delivering solid revenue growth while improving EBITDA margins and integrating its SP Plus acquisition,” it said in the rating note. The ratings agency added that “this progress should reduce leverage to about 8.1x in 2026 from 12.4x in 2025, while FOCF turns positive.”

MSD Investment Corp. and Vista Credit Strategic Lending Corp. are BDC creditors to Metropolis, according to Octus’ BDC Database. A list of Metropolis’ CLO lenders can be found HERE.

Octus’ primary analysis of Metropolis’ deal is HERE.

JPMorgan declined to comment. Metropolis did not respond to a request for comment.