Bank of America is leading a $350 million refinancing deal for Central Parking. The credit, set to launch Wednesday, includes a $175 million "B" loan and a revolver for the same amount. The deal will be stock-secured with a springing lien, whereby the lenders have a right to collateralize the credit with the borrower's assets, said a banker. The credit will refinance a $400 million facility that is also equally split between a $200 million "B" piece and a $200 million revolver.
Pricing on the new line has not been determined. A company report acknowledges, however, that the new credit's rates would likely increase and there would be additional covenants and restrictions considering the current debt markets. Hiram Cox, senior v.p. and cfo of Central Parking, could not be reached. A B of A official declined to comment.
Pricing on the existing line is based on a grid tied to leverage. As of last September, the credit had $221.5 million tapped at a rate of LIBOR plus 7/8%. Last November, Central Parking further entered into a revolving credit note of $10 million, which is due Feb. 28 and is also priced at LIBOR plus 7/8%. Other lenders on the existing facility include Scotia Capital, Fleet National Bank, and SunTrust Bank. Central Parking is a leading provider of parking and transportation-related services, operating approximately 3,900 facilities in the U.S., Canada, Latin America and Europe.