Cavallo Bus Lines, LLC--Acquisition of Control of Assets--White Knight Limousine, Inc.

Topics:  Cavallo Bus Lines, White Knight Limousine

Raina S. Contee
Surface Transportation Board
22 March 2017

[Federal Register Volume 82, Number 54 (Wednesday, March 22, 2017)]
[Notices]
[Pages 14787-14788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-05603]


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SURFACE TRANSPORTATION BOARD

[Docket No. MCF 21075 \1\]


Cavallo Bus Lines, LLC--Acquisition of Control of Assets--White 
Knight Limousine, Inc.

AGENCY: Surface Transportation Board.

ACTION: Notice Tentatively Approving and Authorizing Finance 
Transaction.

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SUMMARY: On March 8, 2017, Cavallo Bus Lines (Cavallo) and White Knight 
Limousine, Inc. (White Knight)

[[Page 14788]]

(collectively, Applicants) filed an application for Cavallo to purchase 
certain assets (including motorcoaches and contracts) of White Knight 
used to provide certain motor carrier services. The Board is 
tentatively approving and authorizing the transaction, and, if no 
opposing comments are timely filed, this notice will be the final Board 
action.
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    \1\ Concurrently with their application, the parties also filed, 
in Docket MCF 21075 TA, a request under 49 U.S.C. 14303(i) to 
operate the assets to be acquired on an interim basis pending 
approval of the acquisition. In a decision served on March 17, 2017 
in related Docket No. MCF 21075 TA, interim approval was granted, 
effective on the service date of that decision.

DATES: Comments must be filed by May 8, 2017. Applicants may file a 
reply by May 22, 2017. If no comments are filed by May 8, 2017, this 
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notice shall be effective on May 9, 2017.

ADDRESSES: Send an original and 10 copies of any comments referring to 
Docket No. MCF 21075 to: Surface Transportation Board, 395 E Street 
SW., Washington, DC 20423-0001. In addition, send one copy of comments 
to Cavallo's representative: David H. Coburn, Steptoe & Johnson, LLP, 
1330 Connecticut Ave. NW., Washington, DC 20036.

FOR FURTHER INFORMATION CONTACT: Jonathon Binet (202) 245-0368. Federal 
Information Relay Service (FIRS) for the hearing impaired: 1-800-877-
8339.

SUPPLEMENTARY INFORMATION: On March 8, 2017, Cavallo Bus Lines 
(Cavallo) and White Knight Limousine, Inc. (White Knight) 
(collectively, Applicants) filed an application under 49 U.S.C. 14303 
for Cavallo to purchase certain assets (including motorcoaches and 
contracts) of White Knight used to provide certain motor carrier 
services. The Board is tentatively approving and authorizing the 
transaction, 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 at 49 CFR 1182.5 and 1182.8.
    Applicants assert the following facts. Cavallo, a Delaware limited 
liability company, is wholly owned by BCPL, LLC, a non-carrier holding 
company, and is not affiliated with any other companies. Cavallo 
provides contract and charter service from terminals in Gillespie, 
Ill.; Indianapolis, Ind.; and Springfield, Mo. (MC-101883). It 
primarily operates in the Midwest, but offers charter service 
nationwide. Cavallo currently operates approximately 110 motorcoaches; 
its contract customers include public and private universities and 
colleges. It also provides airport transfer service in several Midwest 
cities. White Knight is a Missouri corporation with no affiliates. It 
provides motorcoach charter and contract services as well as limousine 
and car services primarily out of Columbia, Mo., and occasionally out 
of Springfield, Mo. (MC-289901). It currently operates approximately 37 
passenger motor vehicles (19 motorcoaches and 18 cars and limousines). 
White Knight's contract customers include university athletic 
departments and a minor league baseball team.
    Applicants state that, under the proposed transaction, Cavallo will 
purchase motorcoaches and contracts associated with White Knight's 
contract and charter service in Missouri and Kansas. White Knight will 
sign a non-compete agreement prohibiting it from operating competing 
service for an agreed period of time and will provide Cavallo a right 
of first refusal in the event that White Knight decides to sell its 
other transportation operations.
    Under 49 U.S.C. 14303(b), the Board must approve and authorize a 
transaction 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 from the proposed transaction; and (3) the interest 
of carrier employees affected by the proposed transaction. Applicants 
submitted information, as 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), and a statement that 
the aggregate gross operating revenues of Cavallo and White Knight 
exceeded $2 million for the preceding 12-month period under 49 U.S.C. 
14303(g).\2\
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    \2\ Applicants with gross operating revenues exceeding $2 
million are required to meet the requirements of 49 CFR 
1182.2(a)(5).
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    Applicants submit that the proposed transaction will not have an 
adverse impact on the adequacy of transportation services available to 
the public. Applicants state that Cavallo, a significantly larger 
carrier than White Knight, has access to increased capital resources, 
increased interest cost savings, and reduced operating costs resulting 
from Cavallo's enhanced volume purchasing power. According to 
Applicants, the centralization of administrative functions and 
Cavallo's ability to achieve volume discounts will result in cost 
savings. Applicants also assert that the transaction will have no 
adverse impact on competition because at least five other motor 
passenger carriers operate in the same areas of Kansas and Missouri. 
Further, Applicants state the transaction will not have a materially 
adverse impact on employees as ``Cavallo intends to offer employment to 
the small number of employees currently providing the White Knight 
services at issue, provided that such employees meet certain minimum 
standards.''
    On the basis of the application, the Board finds that the proposed 
acquisition 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 on our Web site 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 as having been vacated.
    3. Notice of this decision will be published in the Federal 
Register.
    4. This notice will be effective May 9, 2017, unless opposing 
comments are filed by May 8, 2017.
    5. 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: March 16, 2017.

    By the Board, Board Members Begeman, Elliott, and Miller.
Raina S. Contee,
Clearance Clerk.
[FR Doc. 2017-05603 Filed 3-21-17; 8:45 am]
 BILLING CODE 4915-01-P