Capital Auto cuts spread on $325 million loan to Libor plus 500 bps

By Sara Rosenberg

New York, April 18 - Capital Automotive LP reduced pricing on its $325 million seven-year senior secured second-lien term loan (B1/B-) to Libor plus 500 basis points from Libor plus 550 bps, according to a market source.

Also, the original issue discount on the term loan was revised to 99½ from 99, the source said.

The 1% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three were unchanged.

Covenants include maximum leverage and minimum fixed charge coverage ratios.

Barclays, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Goldman Sachs & Co. are the leads on the deal.

Proceeds will be used to repay a portion of the company's first-lien term loan and 6¾% senior notes.

Recommitments were due at noon ET on Thursday, the source added.

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

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