Third Lane Offers Double-Digit Yield as Micromobility Moves Past Restructuring

Third Lane Mobility, operating under the Bird and Spin brands, was established in 2017 and has emerged as one of the largest global providers of shared electric scooters and bikes. The company acquired the assets of Bird following a Chapter 11 restructuring in 2023, which addressed pandemic-related challenges that had severely impacted revenue. Controlling a significant portion of the equity is Apollo Global Management (through its affiliate MidCap Financial and as a key creditor in the restructuring), a leading alternative investment manager specializing in corporate turnarounds and special situations. This backing enhances financial stability and supports strategic initiatives, including a 20 million USD capital raise from existing investors (including Apollo-affiliated funds) in January 2026 to fund growth.

Operations and Market Position

Third Lane Mobility maintains a fleet of approximately 150,000 electric scooters and bikes across 215 cities in North America, Europe, the Middle East, and even Finland. North America accounts for about 75% of revenue, where the company holds a 35% market share in the US and Canada, operating in an oligopolistic environment alongside a few key competitors. The portfolio includes top markets like Los Angeles, Tel Aviv (contributing 7% of revenue due to year-round usability), Atlanta, and others. The company continually optimizes its footprint, having exited over 150 unprofitable cities to focus on viable locations. A notable 2024 partnership with Lyft integrates Bird services into the Lyft ride-hailing app, allowing users to access scooters directly, while the companies maintain a strategic integration rather than a full absorption of operations. Expansion plans include adding 33,000 vehicles and entering new markets, emphasizing regions with favorable climates and urban infrastructure to mitigate seasonality.

Financial Profile and Growth Outlook

The company generated around 150 million USD in revenue for 2025, with positive operating profitability post-restructuring. Financial models project steady improvement: revenue climbing to about 200 million USD by 2027 and 220-250 million USD by 2029, driven by fleet growth and efficiency gains. Adjusted EBITDA is expected to rise dramatically from 6 million USD in 2025 to 46 million USD in 2027 and 54 million USD in 2029. This trajectory implies a strengthening credit profile, with gross debt-to-EBITDA declining from 8x currently to 1.8x by 2028. Covenant enhancements include net debt-to-EBITDA caps at 5x starting Q3 2027 and 4x by Q3 2028, providing investor safeguards.

Bond Issuance Parameters

The debut senior secured bond issuance by subsidiary Blue Jay Transit Inc., incorporated in Delaware, targets an initial 80 million USD, with an option to upsize to 160 million USD upon meeting a debt incurrence test (debt-to-EBITDA below 3x, already satisfied). Originally planned for four years, the term was shortened to three years based on investor feedback, with maturity in February 2029. The coupon is set at 12%, paid semi-annually, with an indicative placement price around 95.5%, yielding an effective 13.5% to maturity. Call options allow early redemption at premiums: 106% after 18 months, 104% after 24 months, and 102% after 30 months. A put option at 101% triggers on change of control or delisting. Security includes shares of the issuer and guarantors, escrow accounts, and intercompany loan claims. Proceeds allocate 50 million USD to capital expenditures like fleet expansion and 30 million USD to general corporate purposes, including potential acquisitions.

Pricing Benchmarks

Recent issuances from peers like Voi and Tier provide a clear pricing reference, suggesting spreads in the 675-725 basis points (bps) range for Third Lane Mobility’s offering. Voi’s 2024/28 EUR 50m 4yr bond, initially at 3mE+6.75%, has tightened to around 450 bps, with a successful tap of EUR 40m at 104.75 in October 2025. Tier’s 2025/29 bond trades at similar levels, while Dott’s EUR 70m 4yr at 3mE+8.00% has held steady around 800 bps.

These comparisons highlight potential for spread compression in successful micromobility credits, aligning with Third Lane’s improving profile and supporting yields above 13% at launch.

Investment Rationale

The issuance offers compelling yields of 13.5-15% annually, potentially higher with early calls, such as post a prospective IPO that could refinance the debt. Apollo’s involvement provides downside protection through subordinated financing and expertise in value creation. Market leadership in North America, Lyft integration, and geographic diversification support revenue stability and growth. The micromobility sector’s maturation, combined with the company’s post-restructuring profitability and modest scaling plans, positions it for improved metrics without aggressive risk-taking. For investors comfortable with the profile, this represents a high-premium opportunity relative to peers, with upside from operational efficiencies and potential market consolidation.

Key Risks

Regulatory developments pose the primary threat, as municipalities and governments may impose restrictions on scooter usage, age limits, or bans in certain areas due to safety concerns or urban clutter, as seen in some European tourist centers. Seasonality affects northern markets, though mitigated by warmer-climate focus like Tel Aviv. Competition from players like Lime and local operators remains intense, potentially pressuring pricing and market share. While Apollo’s support reduces default likelihood, the startup-like nature of the business means execution risks in fleet expansion and integration could impact projections.