American Tire plans to redeem $45.2 million 13% discount notes, preferreds using IPO proceeds

By Jennifer Chiou

New York, Feb. 5 - American Tire Distributors, Inc. plans to use the partial proceeds from its $230 million initial public offering to redeem its $45.2 million of 13% discount notes due Oct. 1, 2013, according to an S-1 filed with the Securities and Exchange Commission.

The company said that it plans to pay a redemption premium of 1%.

American Tire said that after the discount notes, it will redeem all of its 8% cumulative redeemable preferred stock at a redemption price equal to $20 million plus accumulated dividends.

With any remaining proceeds, the company intends to redeem some or all of its $150 million of 10¾% senior notes due April 1, 2013.

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

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