Standard Parking Announces Increased $135 Million Senior Credit Facility
CHICAGO--Standard Parking Corporation , one of the nation's leading providers of parking management services, announced that it has entered into an amended and restated senior credit agreement.
The $135 million revolving facility, which now will mature in June 2011, represents a commitment increase of $45 million and will be provided by a group comprised of seven member banks. Key changes are a reduction in the pricing of its LIBOR Margin, Base Rate Margin and its Letter of Credit Fee Rate of up to 50 basis points.
Concurrent with the execution of this amended and restated credit agreement, the Company has notified the trustee for the 9.25% Senior Subordinated Notes of the Company's intent to redeem the remaining outstanding balance of approximately $48.9 million. Settlement of the redemption of these senior subordinated notes, with accumulated interest, is expected to occur in approximately thirty days.
The Company anticipates that the amended facility and redemption of the 9.25% notes will improve earnings by approximately $0.04 per share over the remainder of fiscal year 2006 and $0.07 per share on an annualized basis at current interest rates.
G. Marc Baumann, the Company's Executive Vice President and Chief Financial Officer, said, "We are extremely pleased with our amended and restated senior credit facility. In addition to providing more favorable pricing and an extended maturity date, the increased facility will afford added financial flexibility and allow us to eliminate the balance of our high-yield debt. We are also very pleased that all of our existing participant banks will remain lenders under this amended facility, reflecting their continued support of our business. In addition, we have added new banks with which we have long-term working relationships, and look forward to working with them as lenders."
For a complete list of the changes to the senior credit facility, please refer to the full agreement, which will be filed by the Company with a Form 8-K.
Standard Parking is a leading national provider of parking facility management services. The Company provides on-site management services at multi-level and surface parking facilities for all major markets of the parking industry. The Company manages over 1,900 facilities, containing over one million parking spaces in close to 300 cities across the United States and Canada, including parking-related and shuttle bus operations serving more than 60 airports.
Concurrent with the execution of this amended and restated credit agreement, the Company has notified the trustee for the 9.25% Senior Subordinated Notes of the Company's intent to redeem the remaining outstanding balance of approximately $48.9 million. Settlement of the redemption of these senior subordinated notes, with accumulated interest, is expected to occur in approximately thirty days.
The Company anticipates that the amended facility and redemption of the 9.25% notes will improve earnings by approximately $0.04 per share over the remainder of fiscal year 2006 and $0.07 per share on an annualized basis at current interest rates.
G. Marc Baumann, the Company's Executive Vice President and Chief Financial Officer, said, "We are extremely pleased with our amended and restated senior credit facility. In addition to providing more favorable pricing and an extended maturity date, the increased facility will afford added financial flexibility and allow us to eliminate the balance of our high-yield debt. We are also very pleased that all of our existing participant banks will remain lenders under this amended facility, reflecting their continued support of our business. In addition, we have added new banks with which we have long-term working relationships, and look forward to working with them as lenders."
For a complete list of the changes to the senior credit facility, please refer to the full agreement, which will be filed by the Company with a Form 8-K.
Standard Parking is a leading national provider of parking facility management services. The Company provides on-site management services at multi-level and surface parking facilities for all major markets of the parking industry. The Company manages over 1,900 facilities, containing over one million parking spaces in close to 300 cities across the United States and Canada, including parking-related and shuttle bus operations serving more than 60 airports.
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