American Tire Distributors plans new debt for buyout by TPG Capital

By Sara Rosenberg

New York, April 21 - American Tire Distributors Holdings Inc. received a debt financing commitment to help fund its acquisition by TPG Capital, according to a news release.

Bank of America, Barclays Capital, GE Capital, RBC Capital Markets, UBS and Wells Fargo are leading the new debt.

Under the agreement, TPG is purchasing the company from Investcorp, Berkshire Partners LLC and Greenbriar Equity Group LLC in a transaction valued at $1.3 billion.

Other financing for the buyout will come from equity.

The transaction is expected to close in the second quarter, subject to customary conditions, including receipt of applicable regulatory approvals.

As a result of the buyout, American Tire Distributors' planned public offering of stock is being suspended.

American Tire Distributors is a Charlotte, N.C.-based distributor of replacement tires.

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