Central Parking LBO financing to include $405 million credit facility

By Sara Rosenberg

New York, March 28 - Central Parking Corp. detailed its leveraged buyout financing package, including plans for a new $405 million senior secured credit facility, according to a PREM14A filed with the Securities and Exchange Commission Wednesday.

Goldman Sachs is the lead bank on the deal.

The credit facility consists of a $75 million six-year revolver, a $225 million seven-year first-lien term loan, a $55 million seven-year synthetic letter-of-credit facility and a $50 million 71/2-year second-lien term loan.

Pricing on the first-lien debt is expected to be Libor plus 225 basis points if it's rated B1/B+ or better, otherwise Libor plus 250 bps, and pricing on the second-lien term loan is expected to be Libor plus 575 bps if it's rated B3/B- or better, otherwise Libor plus 600 bps, the filing said.

The second-lien term loan has call protection of 102 in year one and 101 in year two.

Central Parking is being bought for $22.53 per share in cash by KCPC Holdings, Inc., a company formed by Kohlberg & Co., LLC, Lubert-Adler, LP, and Chrysalis Capital Partners, LP, for this transaction.

Other LBO financing will come from up to $417.8 million in first mortgage and mezzanine financing from Greenwich Capital Financial Products, Inc. and Goldman Sachs Mortgage Co.

Closing of the transaction is anticipated to be completed in the second quarter, subject to shareholder approval, requisite regulatory approvals and customary closing conditions.

Central Parking is a Nashville, Tenn., provider of parking and transportation-related services.

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