American Tire Distributors to price $100 million tap of 10¼% notes due 2022 in Thursday drive-by

By Paul A. Harris

Portland, Ore., March 23 – American Tire Distributors, Inc. plans to price a $100 million add-on to its 10¼% senior subordinated notes due March 1, 2022 (existing ratings Caa2/CCC+) on Thursday, trailing a late-morning conference call with investors, according to an informed source.

BofA Merrill Lynch is the bookrunner for the Rule 144A for life offering.

The notes feature a make-whole call at Treasuries plus 50 basis points until March 1, 2018, then become callable at 105.125. The notes also feature a 40% equity clawback at 110.25 until March 1, 2018.

The Huntersville, N.C.-based independent supplier of tires plans to use the proceeds to repay borrowings under its ABL facility.

The original $805 million issue priced at par in February 2015.

The add-on notes will become immediately fungible with the original notes.

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