American Tire launches $140 million term loan at discount of 98

By Sara Rosenberg

New York, Jan. 9 – American Tire Distributors Inc. launched on Friday its $140 million non-fungible covenant-light secured term loan due June 1, 2018 with original issue discount talk of 98, according to a market source.

As previously reported, the term loan is talked at Libor plus 475 basis points with a step-down to Libor plus 450 bps at total net leverage of 4 times and a 1% Libor floor.

Also, the new term loan has 101 hard call protection until March 28, 2015, which matches the existing term loan.

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

Proceeds will be used with funds from an initial public offering of common stock to redeem 11½% senior subordinated notes due 2018 and for general corporate purposes.

With the new term loan, the company is amending its existing term loan to revise the step-down to Libor plus 450 bps to take effect at total net leverage of 4 times instead of at 4.5 times. Current pricing on the existing term of Libor plus 475 bps will be unchanged.

In addition, the amendment will modify the secured debt incurrence test to 4.5 times net secured leverage from 4 times.

Lenders are being offered a 25 bps consent fee.

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.