American Tire launches $300 million term loan at Libor plus 500 bps

By Sara Rosenberg

New York, March 7 - American Tire Distributors Inc. launched on Friday its $300 million senior secured covenant-light term loan due June 2018 with price talk of Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has hard call protection of 101 for one year, the source said.

Bank of America Merrill Lynch is the lead bank on the deal.

Proceeds will be used to help fund the acquisition of Terry's Tire Town Holdings Inc., an Alliance, Ohio-based tire distributor.

Closing is expected in late March or early April.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.