Advanced Accessory obtains $145 million credit facility; Castle Harlan self-syndicates

By Carlise Newman

Chicago, April 16 - Advanced Accessory Systems LLC obtained $145 million in bank facilities to finance its leveraged buyout by Castle Harlan Partners IV LP. Castle Harlan completed syndication on the loan itself.

The loan consists of a $40 million revolver, a $40 million term loan A and a $65 million term loan B.

Self-syndication is not common, but is becoming more so, said a market source.

"I can see self-syndication being a cheaper alternative," said the source. "When a company does their own syndication, they don't want to pay the fees involved with having another bank do it."

He said taxes have raised the expense of syndication significantly.

Castle Harlan Partners IV LP is a private equity investment fund owned by Castle Harlan Inc.

Castle Harlan announced it completed its acquisition of Advanced Accessory on April 15 in a transaction valued at approximately $260 million.

Advanced Accessory, based in Sterling Heights, Mich., makes automotive roof racks and towing systems and has 18 manufacturing facilities throughout North America and Europe.

The company had been owned by JPMorgan Partners, the private-equity arm of J.P. Morgan Chase & Co., which purchased Advanced Accessory along with management in 1995.

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