NEWS

WIRES

OTHER

Capital Automotive LLC Announces Extension of Its Approximately $2 Billion Term Loan and Revolving Credit Facility

MCLEAN, Va., Oct. 8 /PRNewswire/ -- Capital Automotive LLC (the "Company"), the nation's leading specialty finance company for automotive retail real estate, which is owned by funds managed by DRA Advisors LLC, a real estate investment advisor based in New York, today announced that it has completed an amendment to extend the Company's senior secured credit facility (the "Amendment"), which consists of an approximately $1.8 billion term loan and a $250 million revolving credit facility. The Company received consenting votes from holders in excess of 90% of the combined outstanding principal balance, including 100% of the lenders on the revolving credit facility ("Consenting Lenders"). The term loan and revolving credit facility, which originally had maturity dates of December 16, 2010 and December 16, 2009, respectively, were extended to December 14, 2012 and December 16, 2011, respectively, for Consenting Lenders. The Amendment approved a revolving credit facility commitment amount during the extended period of $115 million. The maturity date associated with the non-Consenting Lenders' outstanding debt did not change as a result of the Amendment. Barclays Capital was the sole agent on the transaction.

Although the automotive retail market has declined significantly throughout 2008 and 2009, reflecting the impact of weak economic conditions in the U.S., the majority of the Company's tenants have experienced stronger performance than the industry as a whole. The outperformance was due to the Company's portfolio remaining heavily concentrated in import branded facilities, currently approximately 76%. While U.S. vehicle sales for all major vehicle manufacturers have declined during the recent difficult economic environment, a disproportionate amount of the decline in the U.S. has been attributable to domestic manufacturers. Approximately 99% of the Company's portfolio is currently leased, with no significant near-term lease expirations until 2013. Since the Company's inception in 1998, it has experienced only approximately $1.7 million in cumulative missed rental payments representing less than 0.1% of its cumulative rents since that date.

David S. Kay, Senior Vice President and Chief Financial Officer added, "We are extremely pleased that we have completed this amendment to our structured debt, significantly extending our near-term maturities. We believe our successful execution reflects the positive relationships that we have with our lending group, as well as their recognition that our portfolio has performed above their expectations and current industry-wide trends. We believe that our diverse real estate portfolio will continue to outperform other segments during these challenging economic times."

About Capital Automotive

Capital Automotive, headquartered in McLean, Virginia, is a Delaware limited liability company. The Company's primary strategy is to acquire real property and improvements used by operators of multi-site, multi-franchised automotive dealerships and related businesses. Additional information on Capital Automotive is available on the Company's Website at http://www.capitalautomotive.com.

About DRA Advisors LLC

DRA Advisors LLC is a New York-based registered investment advisor specializing in real estate investment management services for institutional and private investors, including pension funds, university endowments, foundations and insurance companies. Founded in 1986, the firm currently manages approximately $10 billion in assets. Additional information about DRA can be found on its website at http://www.draadvisors.com.

    Contact Information
    David S. Kay
    Senior Vice President and Chief Financial Officer
    Capital Automotive Real Estate Services, Inc.
    703.394.1302

SOURCE Capital Automotive LLC