Up 15% last week, why is this ASX 200 share sinking on Monday?

Investors are pressuring the ASX 200 company today. But why?

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S&P/ASX 200 Index (ASX: XJO) share Bapcor Ltd (ASX: BAP) is giving back some of last week's blistering gains today.

Shares in the auto parts company closed on Friday trading for $5.00. In late morning trade on Monday, shares are changing hands for $4.87 apiece, down 2.6%.

For some context, the ASX 200 is down 0.2% at this same time.

Here's what's happening.

ASX 200 share falls amid debt refinancing

Last Tuesday, the Bapcor share price surged to close up 14% after the company confirmed it had received a non-binding takeover proposal from United States-based private investment firm Bain Capital for $5.40 a share. That saw the stock end the week up 14.6%.

There's been no update on those acquisition discussions.

However, this morning the ASX 200 share did provide a financing update.

Bapcor said it has refinanced $200 million worth of debt facilities that were due to mature in July 2025. The debt facilities were increased by $100 million and now total $300 million. Those now mature in July 2028 and July 2029.

The auto parts company now has access to a total $720 million debt facility with a number of major lenders including Australia and New Zealand Banking Group Ltd (ASX: ANZ), National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC).

Management noted that the refinancing improves the ASX 200 share's financial position and provides additional funds for general corporate purposes.

Commenting on the transaction, Bapcor interim chief financial officer (CFO) George Saoud said:

We are pleased with the outcome of our refinancing. We appreciate the continued support of our banking partners, and with their support Bapcor has strengthened its financial foundation. The new debt facility has competitive terms and pricing and provides the opportunity for us to prepare for future growth.

What else is happening with Bapcor shares?

In a non-price-sensitive announcement, the ASX 200 share also reported that, as of 1 July, George Saud will transition from interim to permanent CFO.

Saud took over as interim CFO on 14 March.

Commenting on the appointment, Bapcor interim CEO Mark Bernhard said, "Bapcor is delighted to confirm George's permanent appointment as CFO following an extensive search."

Bernhard added:

George is highly experienced and has held senior financial and commercial positions across a range of complex corporations including Coles Group, Metcash Supermarkets and Fantastic Holdings. George is a great addition to Bapcor's Group leadership team and will be pivotal in driving the company's performance in the future.

With today's intraday dip factored in, the ASX 200 share is down 9% in 2024.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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