Central Parking amends loan, fixing noncompliance with leverage ratios

By Sara Rosenberg

New York, Aug. 12 - Central Parking Corp. amended its $350 million senior secured credit facility to remedy noncompliance with the leverage and senior leverage ratios at the end of the second fiscal quarter.

The facility consists of a $175 million five-year revolver and a $175 million term loan. Interest rates under the two tranches are tiered based on the company's leverage ratio. Under the amendment, a new pricing tier was included in the credit agreement that adds 25 basis points when the leverage ratio exceeds certain levels.

"We are pleased with the cooperation of Bank of America, our agent bank, and the other lenders in the bank group, in finalizing this agreement under terms that are very satisfactory to Central Parking," said Monroe J. Carell, Jr., chairman and chief executive officer, in a news release. "The completion of this amendment on these terms demonstrates the confidence our lenders have in our ability to overcome these uncertain economic times and eventually achieve our goal of resuming consistent long-term growth."

Central Parking is a Nashville provider of parking and transportation management services.

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