American Tire finalizes $1 billion term loan B at 98.75 OID

By Sara Rosenberg

New York, Oct. 8 – American Tire Distributors Inc. set the original issue discount on its $1 billion seven-year term loan B (Caa1/B-/B-) at 98.75, within the 98 to 99 talk, according to a market source.

In addition, the 101 soft call protection on the term loan was extended to one year from six months, the source said.

Pricing on the term loan remained at Libor plus 625 basis points with a 0.75% Libor floor.

BofA Securities Inc., Wells Fargo Securities LLC and Citigroup Global Markets Inc. are the leads on the deal.

Proceeds will be used to refinance existing debt.

American Tire is a Huntersville, N.C.-based tire distributor.

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