American Tire to launch $420 million incremental loan on Wednesday

By Sara Rosenberg

New York, June 3 - American Tire Distributors Inc. is set to hold a call on Wednesday to launch a $420 million incremental term loan due June 2018 that is talked at Libor plus 475 basis points with a 1% Libor floor and an original issue discount that is still to be determined, according to a market source.

The term loan is split between a $340 million funded tranche and an $80 million delayed-draw tranche, the source said.

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

Proceeds will be used to refinance 9¾% notes.

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

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