Mavis Tire lifts incremental loan to $315 million, firms OID at 99.25

By Sara Rosenberg

New York, April 12 – Mavis Tire Express Services TopCo Corp. upsized its fungible incremental first-lien term loan due May 2028 to $315 million from $275 million and finalized the original issue discount at 99.25, the tight end of the 99 to 99.25 talk, according to a market source.

Pricing 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.

Both ratings agencies have confirmed ratings will remain the same, the source said.

Jefferies LLC is the lead arranger on the deal.

Commitments continue to be due at noon ET on Wednesday, the source added.

Proceeds will be used to fund an acquisition, to repay existing revolving credit facility borrowings and, due to the upsizing, to add cash to the balance sheet.

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.

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

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