Capital Automotive REIT, a specialty finance company for automotive retail real estate, announced Apr. 5 that the company has closed a $60 million unsecured revolving credit facility, for which Comerica Bank is the syndication agent. Other financial institutions participating include Bank of America, N.A., Bank One, N.A., Branch Banking and Trust Company (BB&T) and Toyota Motor Credit Corporation. The facility provides for a three-year term with interest equal to the 30-day LIBOR rate plus 200 basis points and requires the repayment of borrowings within 180 days. The facility replaces the Company's existing $50 million secured revolving credit facility.
Commenting on the news, David S. Kay, senior vice president and chief financial officer, stated, "This unsecured financing transaction is a reflection not only of the successful execution of our business strategy, but also the stringent underwriting we perform and our solid, flexible balance sheet. The high quality participants and the unsecured nature of this facility supports our strategy of diversifying our financing sources to fund our growth while providing greater flexibility."
