By Paul A. Harris
St. Louis, March 23 - American Tire Distributors Inc. raised about $330 million in a restructured offering of high-yield bonds on Wednesday, according to a syndicate source.
The company sold $140 million of seven-year senior floating-rate notes (Caa2/CCC+) at par to yield three-month Libor plus 625 basis points. Price talk was in the three-month Libor plus 525 basis points area.
The company also priced $150 million of eight-year senior fixed-rate notes (Caa2/CCC+) at par to yield 10¾%. Price talk was in the 10% area.
In addition the company sold a previously unannounced $51.5 million face amount tranche of non-rated senior discount notes due Oct. 1, 2013. The zero-coupon notes priced at 77.705 to yield 13%.
The company had originally been in the market with $130 million of seven-year floating-rate notes that were non-callable for two years and $200 million of 10-year senior subordinated notes that were non-callable for five years.
Banc of America Securities LLC ran the books for the Rule 144A issue. The co-managers were Credit Suisse First Boston and Wachovia Securities.
Proceeds will be used to finance the sale of American Tire Distributors Inc. to Investcorp.
The issuer is a Charlotte, N.C.-based independent wholesale supplier of tires to the replacement tire market in the United States.
| Issuer: | American Tire Distributors Inc.
|
| Face amount: | $330 million (approximate)
|
| Bookrunner: | Banc of America Securities LLC
|
| Co-managers: | Credit Suisse First Boston, Wachovia Securities
|
| Trade date: | March 23
|
| Settlement date: | March 31
|
|
|
| Senior floating-rate notes
|
| Amount: | $140 million
|
| Maturity: | April 1, 2012
|
| Coupon: | Three-month Libor plus 625 basis points
|
| Price: | Par
|
| Yield: | Three-month Libor plus 625 basis points
|
| Call protection: | Two years
|
| Equity clawback: | Until April 1, 2007 for 35%
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+ (lowered from B-)
|
| Price talk: | Three-month Libor plus 525 basis points area
|
|
|
| Senior fixed-rate notes
|
| Amount: | $150 million
|
| Maturity: | April 1, 2013
|
| Coupon: | 10¾%
|
| Price: | Par
|
| Yield: | 10¾%
|
| Spread: | 622 basis points
|
| Call features: | Callable after April 1, 2009 at 105.375, 102.688, par on and after April 1, 2011
|
| Equity clawback: | Until April 1, 2008 for 35%
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Price talk: | 10% area
|
|
|
| Senior discount notes
|
| Face amount: | $51.5 million
|
| Maturity: | Oct. 1, 2013
|
| Coupon: | 0%
|
| Price: | 77.705
|
| Yield: | 13%
|
| Spread: | 841 basis points
|
| Call protection: | Two years
|
| Equity clawback: | 35% for two years
|
| Rating: | Not rated
|
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