Dealer Tire flexes $975 million term loan B to Libor plus 550 bps

By Sara Rosenberg

New York, Nov. 30 – Dealer Tire LLC raised pricing on its $975 million seven-year term loan B (B) to Libor plus 550 basis points from talk in the range of Libor plus 425 bps to 450 bps, according to a market source.

Furthermore, the original issue discount talk on the term loan was changed to a range of 94 to 95 from 99 and the 101 soft call protection was extended to one year from six months, the source said.

Revisions were also made to, among other things, the incremental, MFN and excess cash flow sweep.

The term loan still has a 0% Libor floor.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, PNC Bank, SunTrust Robinson Humphrey Inc. and US Bank are the leads on the deal.

Commitments are due at noon ET on Monday, the source added.

Proceeds will be used to help fund the buyout of the company by Bain Capital Private Equity from Lindsay Goldberg LLC.

Closing is expected in December, subject to customary conditions, including regulatory approvals.

Dealer Tire is a Cleveland-based distributor of replacement tires and parts for automotive OEMs and their dealers.

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