American Tire Distributors talks $250 million seven-year second-lien notes to yield 9¾% area

By Paul A. Harris

St. Louis, May 18 - American Tire Distributors, Inc. talked its $250 million offering of seven-year second-lien notes (/CCC+/) with a yield in the 9¾% area, an informed source said on Tuesday.

The books close at noon ET on Wednesday. Pricing is set for Wednesday afternoon.

Bank of America Merrill Lynch, Barclays Capital Inc., RBC Capital Markets Corp. and UBS Investment Bank are the joint bookrunners for the Rule 144A with registration rights offering.

The notes will become callable in three years at par plus ¾ of the coupon. They also feature a 101% poison put.

Proceeds will be used to help fund the acquisition of the company by TPG Capital.

American Tire is a Charlotte, N.C.-based distributor of replacement tires.

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