Dealer Tire firms $1.42 billion term loan at SOFR plus 375 bps

By Sara Rosenberg

New York, Jan. 11 – Dealer Tire set pricing on its roughly $1.415 billion term loan B due December 2027 at SOFR plus 375 basis points, the low end of the SOFR plus 375 bps to 400 bps talk, according to a market source.

In addition, the original issue discount on the term loan was changed to 99.75 from 99.5, the source said.

The term loan still has a 0.5% floor and 101 soft call protection for six months.

JPMorgan Chase Bank is the lead on the deal.

Commitments continued to be due at 5 p.m. ET on Thursday, the source added.

Proceeds will be used to reprice an existing term loan B down from SOFR plus 450 bps with a 0.5% floor.

Dealer Tire is a Cleveland-based manager of replacement tire and parts programs for automotive OEMs.

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