New Issue: Mavis Tire prices $720 million eight-year notes at par to yield 6½%

By Paul A. Harris

Portland, Ore., April 30 – Mavis Tire Express Services priced a $720 million issue of eight-year senior notes (Caa2/CCC) at par to yield 6½% on Friday, according to market sources.

The yield printed in the middle of yield talk in the 6½% area and at the tight end of the 6½% to 6¾% initial guidance.

Jefferies LLC was at the left of a syndicate of bookrunners that also included Apollo Global Securities LLC, BofA Securities Inc., KKR Capital Markets LLC and Stifel Nicolaus & Co. Inc.

Proceeds will be used to fund the leveraged buyout of Mavis Tire, a Millwood, N.Y.-based tire retailer and automotive aftermarket service provider, by an investor group led by BayPine LP, in partnership with TSG Consumer Partners LP.

Issuer:	Metis Merger Sub, LLC prior to merger, then Mavis Tire Express Services TopCo, LP
Amount:	$720 million
Maturity:	May 15, 2029
Securities:	Senior notes
Bookrunners:	Jefferies LLC, Apollo Global Securities LLC, BofA Securities Inc., KKR Capital Markets LLC and Stifel Nicolaus & Co. Inc.
Coupon:	6½%
Price:	Par
Yield:	6½%
First call:	Make-whole call at Treasuries plus 50 bps until May 15, 2024, then callable at 103.25
Equity clawback:	40% at 106.5 until May 15, 2024
Qualified IPO:	All, but not less than all, outstanding notes at 106.5 on or after Nov. 15, 2021 and on or before May 15, 2024
Trade date:	April 30
Settlement date:	May 4
Ratings:	Moody's: Caa2
	S&P: CCC
Distribution:	Rule 144A and Regulation S for life
Price talk:	6½% area
Marketing:	Roadshow

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