Mavis Tire launches $275 million incremental loan at 99-99.25 OID

By Sara Rosenberg

New York, April 11 – Mavis Tire Express Services TopCo Corp. launched on Monday its fungible $275 million incremental first-lien term loan due May 2028 with original issue discount talk of 99 to 99.25, according to a market source.

Price talk on the incremental term loan is SOFR+CSA plus 400 basis points with a 0.75% floor.

CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Jefferies LLC is the lead arranger on the deal.

Commitments are due at noon ET on Wednesday, accelerated from noon ET on Thursday, the source added.

Proceeds will be used to fund an acquisition and to repay existing revolving credit facility borrowings.

Along with the incremental term loan, there will be a conversion of the existing loans to SOFR from Libor with a CSA of 11.448 bps, 26.161 bps and 42.826 bps for SOFR elections of one, three and six months, respectively.

The conversion to SOFR will be done as a negative consent.

Pro forma for the transaction, the first-lien term loan will total $2.18 billion.

Mavis is a Millwood, N.Y.-based tire and service retailer.

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