American Tire cuts spread on $720 million loan to Libor plus 425 bps

By Sara Rosenberg

New York, March 26 – American Tire Distributors Inc. reduced pricing on its $720 million 6½-year covenant-light term loan (B2/B-) to Libor plus 425 basis points from talk of Libor plus 450 bps to 475 bps, according to a market source.

As before, the term loan has a 1% Libor floor, an original issue discount of 99½ and 101 hard call protection for one year.

Recommitments were due at noon ET on Thursday, the source said.

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

Proceeds will be used to refinance existing term loan borrowings.

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

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