New Issue: American Tire Distributors prices $250 million 9¾% seven-year notes to yield 10%

By Paul A. Harris

St. Louis, May 19 - American Tire Distributors, Inc. priced a $250 million issue of 9¾% seven-year senior secured notes (B2/CCC+/) at 98.76 to yield 10% on Wednesday, according to an informed source.

The yield printed 12.5 bps wider than the 9¾% area yield talk.

Bank of America Merrill Lynch, Barclays Capital Inc., RBC Capital Markets Corp. and UBS Investment Bank were the joint bookrunners.

Proceeds will be used to help fund the acquisition of the company by TPG Capital.

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

Issuer:	American Tire Distributors, Inc.
Face amount:	$250 million
Proceeds:	$246.9 million
Maturity:	June 1, 2017
Securities:	Senior secured notes
Bookrunners:	Bank of America Merrill Lynch, Barclays Capital Inc., RBC Capital Markets Corp., UBS Investment Bank
Coupon:	9¾%
Price:	98.76
Yield:	10%
Spread:	721 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until June 1, 2013, then callable at a premium
Equity clawback:	35% at 109.75 until June 1, 2013
Trade date:	May 19
Settlement date:	May 28
Ratings:	Moody's: B2
	Standard & Poor's: CCC+
Distribution:	Rule 144A with registration rights and Regulation S
Price talk:	9¾% area

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