Bank of America shifted the tranche sizes and juiced up pricing and security for its $350 million facility for Central Parking. The seven-year "B" piece is now set at $175 million with a spread of 523 basis points over LIBOR with a 25 basis point upfront fee, according to a banker. The "B" was formerly $150 million and priced at LIBOR plus 31/ 4%. The five-year revolver is now $175 million with an unchanged LIBOR plus 21/ 4% rate. The revolver was previously $200 million. Additionally, the deal is secured by collateral now, rather than stock secured with a springing lien as it was originally. A B of A official declined to comment.
The revamp was needed after bad news befell the company last month and its stock declined as a result (LMW, 2/24). A series of events including the resignation of Central Parking's cfo, Hiram Cox, and the company's report of an invoicing error that reduced earnings figures triggered the changes. The deal was set to wrap up last week, the banker said. The new terms were pitched to the original syndicate for the deal launched in January. William Vareschi, ceo and acting cfo of Nashville Tenn.-based Central Parking, could not be reached by press time.