Advance Auto Parts amends credit agreement, closing on new term loan C

By Sara Rosenberg

New York, July 1 - Advance Auto Parts Inc. amended its credit agreement in order to replace its existing term loan B with a new term loan C. The $250 million term C has a better interest rate, according to a company press release. JP Morgan Securities Inc. was the sole lead arranger and sole bookrunner.

The term B was initially issued for $305 million and was reduced to $265 million in 2002 through prepayments from free cash flow, the company said. The term C combined with $15 million of free cash flow will be used to repay the remaining balance of the term loan B.

The amendments also modify various provisions to reflect strong operating results, the release said.

"Since November 2001, when we completed our credit agreement, Advance Auto Parts has produced strong cash flow and has completed a successful secondary offering," said Jim Wade, president and chief financial officer, in the news release. "We are very pleased that due to our strong financial performance we were able to close on a more advantageous term loan at a favorable rate."

Advance Auto is a Roanoke, Va. auto parts chain.

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