Capital Automotive decreases discount on $1.5 billion term loan

By Paul A. Harris

Portland, Ore., April 2 - Capital Automotive LP cut 25 cents from the original issue discount offered on its $1.5 billion six-year term loan B (Ba3/B+), taking the discount to 99.75 from 99.50, according to a market source.

The 325 basis points Libor spread and the 1% Libor floor are unchanged, as is the 101 soft call protection for six months.

The loan has a step-down to Libor plus 300 bps following a $300 million term loan paydown with proceeds from second-lien debt, subordinated debt or equity and total leverage of less than 67.5%, the source said.

The company's $1.7 billion senior secured credit facility provides for a $200 million five-year revolver as well.

Covenants include maximum leverage and minimum fixed charge coverage ratios.

Barclays is the bookrunner on the deal.

Proceeds will be used to refinance an existing credit facility.

Re-commitments were due by 5 p.m. ET on Tuesday.

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

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