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American Tire flexes $300 million term loan to Libor plus 475 bps
By Sara Rosenberg
New York, March 19 - American Tire Distributors Inc. reduced pricing on its $300 million senior secured covenant-light term loan (CCC+) due June 2018 to Libor plus 475 basis points from Libor plus 500 bps, according to a market source.
Also, a step-down was added to Libor plus 450 bps at 4.5 times net total leverage and the original issue discount was tightened to 99¾ from 99, the source said.
The term loan still has a 1% Libor floor and hard call protection of 101 for one year.
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.
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