Motor City Sweetens Terms
Investors were upset with the initial terms of the amendment, which was launched Jan. 13, because there was no equity input from CCM, which is owned by investor Marian Ilitch.
DB came back to the lenders with a $20 million paydown last Monday.
"The linchpin is just the equity injection," said one portfolio manager. "Some lenders are looking for higher pricing than that, and we're happy to ride the coattails."
The new terms also increase the price bump to 300 basis points, which would bring the total spread to LIBOR plus 5 1/2%. The LIBOR floor was also increased to 3% from 2 3/4%.
Calls to a company spokeswoman and Scott Fischer, CFO of Ilitch Holdings, the parent company of CCM, were not returned.