Capstone cuts term B to $340 million, firms at Libor plus 475 bps

By Sara Rosenberg

New York, March 9 – Capstone Logistics Acquisition Inc. downsized its first-lien term loan B (B3/B-) to $340 million from $395 million and set pricing at Libor plus 475 basis points, the high end of the Libor plus 450 bps to 475 bps talk, according to a market source.

Also, the Libor floor on the term loan was changed to 1% from 0%, the original issue discount widened to 99 from 99.5 and the maturity was shortened to 5.5 years from seven years, the source said.

The term loan still has 101 soft call protection for six months and amortization of 1% per annum.

Credit Suisse Securities (USA) LLC is the lead arranger on the deal.

Commitments were scheduled to be due at noon ET on Monday, the source added.

Proceeds will be used to refinance existing debt.

Capstone is a Peachtree Corners, Ga.-based third-party logistics company.

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