Investcorp to use $200 million senior debt, $300 million bonds for American Tire LBO

By Sara Rosenberg

New York, Feb. 16 - Investcorp plans on financing its approximately $710 million leveraged buyout of American Tire Distributors Inc. using $200 million in senior debt, $300 million in high-yield bonds and $250 million in equity, a company spokesman told Prospect News on Wednesday.

Credit Suisse First Boston, Wachovia and Banc of America Securities LLC are handling the financing, the spokesman added.

In connection with the acquisition, it is expected that American Tire's senior bank debt will be refinanced and its series D 10% senior notes will be repaid.

The acquisition, which is expected to close in late March, is subject to customary conditions, including the receipt of required antitrust approvals or clearances.

Investcorp is buying American Tire from Charlesbank Capital Partners LLC.

American Tire is a Charlotte, N.C.-based wholesale distributor of replacement tires for cars and light-duty trucks.

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