Capital Auto Gets $325M in Financing

MCLEAN, VA-Capital Automotive REIT has obtained $325 million in securitization with the issuance of Triple Net Lease Mortgage Notes by its subsidiary, CARS Loan Servicer LLC, via Credit Suisse First Boston. MBIA Insurance Corp. is insuring three of the four classes in which the notes were issued. Proceeds from the transaction will be allocated to funding acquisitions and to decreasing short-term credit facilities.

This securitization constitutes the restructuring of a $199.3 million securitization package from 1999, which Capital secured with 78 of its dealership properties. The remaining balance on that securitization is $173.2 million which, along with the $151.8 million of new issuances, accounts for the total $325 million package. The fixed-rate, fully amortizing notes carry Moody’s Investors Service’s “Aaa” rating, and Standard & Poor’s “AAA” rating. According to a Moody’s statement, the score is based on the “quality of the collateral, the strength of the structure, the substantial over-collateralization, and the servicing provided by CARS Loan Servicer.”