Mavis Tire to launch $275 million incremental term loan on Monday

By Sara Rosenberg

New York, April 8 – Mavis Tire Express Services TopCo Corp. is scheduled to hold a lender call at 11 a.m. ET on Monday to launch a fungible $275 million incremental first-lien term loan due May 2028, according to a market source.

Jefferies LLC is the lead arranger on the deal.

Price talk on the incremental term loan is SOFR+CSA plus 400 basis points with a 0.75% floor, the source said.

CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Commitments are due at noon ET on Thursday, the source added.

Proceeds will be used to fund an acquisition and to repay existing revolving credit facility borrowings.

Along with the incremental term loan, there will be a conversion of the existing loans to SOFR from Libor with a CSA of 11.448 bps, 26.161 bps and 42.826 bps for SOFR elections of one, three and six months, respectively.

The conversion to SOFR will be done as a negative consent where lenders have five business days from the posting of the change.

Pro forma for the transaction, the first-lien term loan will total $2.18 billion.

Mavis is a Millwood, N.Y.-based tire and service retailer.

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