American Tire Distributors getting $450 million ABL loan with buyout

By Sara Rosenberg

New York, May 17 - American Tire Distributors Holdings Inc. is getting a new $450 million four-year ABL revolving credit facility with its acquisition by TPG Capital, according to a market source.

Bank of America, Barclays Capital, GE Capital, RBC Capital Markets, UBS and Wells Fargo are the lead banks on the deal.

At close, about $185 million of the revolver will be drawn.

As was previously reported, 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 $713.6 million of equity, notes and $7.6 million of cash.

On Monday, the company announced that it is selling $250 million of senior secured notes due 2017.

The company will also be raising $200 million through senior subordinated notes due 2018 in a private placement.

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

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

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