Published on 2/10/2015 in the Prospect News High Yield Daily.
New Issue: American Tire Distributors prices $805 million 10¼% notes at par
By Paul A. Harris
Portland, Ore., Feb. 10 – American Tire Distributors, Inc. priced an $805 million issue of seven-year senior subordinated notes (Caa1/CCC+) at par to yield 10¼% on Tuesday, according to a syndicate source.
The yield printed on top of yield talk.
BofA Merrill Lynch was the left bookrunner. Goldman Sachs & Co., Wells Fargo Securities LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc. and UBS Investment Bank were the joint bookrunners.
The Huntersville, N.C.-based company plans to use the proceeds to fund the redemption of all $425 million of its outstanding 11½% senior subordinated notes due 2018 (being redeemed at 102 on Feb. 11), to pay a cash dividend to its parent company, American Tire Distributors Holdings, Inc., and to enable the ultimate parent to fund a cash dividend or other payment to some of its security holders.
American Tire Distributors is an independent supplier of tires to the North American replacement tire market.
| Issuer: | ATD Finance Corp., to be assumed by American Tire Distributors, Inc.
|
| Amount: | $805 million
|
| Maturity: | March 1, 2022
|
| Securities: | Senior subordinated notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Goldman Sachs & Co., Wells Fargo Securities LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., UBS Investment Bank
|
| Co-managers: | RBC Capital Markets, Morgan Stanley & Co. LLC, Mizuho Securities, RBS Securities, TPG
|
| Coupon: | 10¼%
|
| Price: | Par
|
| Yield: | 10¼%
|
| Spread: | 846 bps
|
| Call protection: | Three years
|
| Trade date: | Feb. 10
|
| Settlement date: | Feb. 25
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A for life
|
| Price talk: | 10¼% area
|
| Marketing: | Roadshow
|
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