Capital Auto trims loan to $200 million, flexes to Libor plus 375 bps

By Sara Rosenberg

New York, Feb. 27 - Capital Automotive downsized its funded add-on term loan B to $200 million from $230 million, eliminated plans for a $170 million delayed-draw term loan and increased pricing to Libor plus 375 basis points from Libor plus 350 bps, according to a market source.

As before, the incremental term loan B due March 2017 has a 1.5% Libor floor and is being offered at an original issue discount of 99.

With the add-on loan, pricing on the company's existing term loan B will be increased to Libor plus 375 bps from Libor plus 350 bps, the source said.

The canceled delayed-draw loan was expected to be available until June 30 and included a delayed-draw fee of 50 bps from April 1 through May 1, 100 bps until June 1 and the full drawn spread until June 30.

Proceeds will be used to refinance just under $200 million of preferred equity. As a result of the downsizing, the company will no longer be cleaning up some other near-term debt maturities. The delayed-draw portion was going to be used to fund a handful of tuck-in acquisitions.

In connection with the new deal, the company is looking to amend its existing credit facility to allow for the additional debt and make some other minor modifications.

The amendment fee that lenders are being offered has been increased to 25 bps from 10 bps, the source added.

Barclays Capital Inc. is the lead bank on the deal.

Commitments and consents are due at noon ET on Tuesday.

Capital Automotive is a McLean, Va.-based provider of sale-leaseback capital to the automotive retail industry.

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