American Tire gets first-in last-out loan, amends to lift Canadian facility

By Jennifer Chiou

New York, May 6 - American Tire Distributors Holdings Inc. entered into an amendment its credit agreement in connection with the acquisition of Regional Tire Holdings Inc. by its indirect wholly owned subsidiary, TriCan Tire Distributors Inc., on April 30, according to an 8-K filed with the Securities and Exchange Commission.

Under the amendment, American Tire obtained a new up to $60 million first-in last-out facility and increased the availability under its Canadian asset-backed facility to $100 million from $60 million.

The share purchase agreement for the acquisition was entered into on March 22. It closed for an aggregate cash consideration of about $62.5 million.

The filing stated that the additional borrowings under the amendment were contingent upon, among other things, the closing of the acquisition on or before May 31.

The first-in last-out facility comes due in 18 months.

Following the closing of the acquisition, $50.1 million was drawn on the first-in last-out facility.

American Tire Distributors is a Huntersville, N.C.-based supplier of tires to the replacement tire market.

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