Capital Automotive second-lien term loan softens with buyout news; Capstone on deck

By Sara Rosenberg

New York, Aug. 28 – Capital Automotive LP’s second-lien term loan headed lower in the secondary market on Thursday following news of a buyout that will be funded with some incremental second-lien debt.

In more happenings, Capstone Logistics LLC surfaced with plans to bring a new deal to market next month.

Capital Automotive’s second-lien term loan slipped to par bid, 102 offered from 101¾ bid, 102½ offered after news emerged that the company is being bought by Brookfield Property Partners from DRA Advisors LLC, according to a trader.

The company’s first-lien term loan was unchanged at par bid, par ¼ offered, the trader said.

To fund the transaction, Capital Automotive is expected to get a $100 million incremental second-lien term loan that will launch post-Labor Day and $300 million of ABS debt, a source remarked.

In addition, the company is anticipated to seek an amendment to its existing credit facility to allow for the change-of-control, the source added.

Barclays is the lead bank on the existing credit facility.

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

Over in the primary market, Capstone Logistics emerged with plans to hold a bank meeting in September to launch a new senior secured credit facility that is anticipated to include a first-lien term loan and a second-lien term loan, a market source said.

Goldman Sachs Bank USA and BNP Paribas Securities Corp. are leading the deal.

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