Published on 3/23/2017 in the Prospect News High Yield Daily.
New Issue: American Tire Distributors sells upsized $120 million tap of 10¼% notes due 2022 at par
By Paul A. Harris
Portland, Ore., March 23 – American Tire Distributors, Inc. priced an upsized $120 million add-on to its 10¼% senior subordinated notes due March 1, 2022 (Caa2/CCC+) at par on Thursday, according to an informed source.
The issue size was increased from $100 million.
BofA Merrill Lynch was the bookrunner for the Rule 144A for life offering.
The Huntersville, N.C.-based independent supplier of tires plans to use the proceeds to repay borrowings under its ABL facility.
| Issuer: | American Tire Distributors, Inc.
|
| Amount: | $120 million, increased from $100 million
|
| Maturity: | March 1, 2022
|
| Security description: | Add-on to 10¼% senior subordinated notes due March 1, 2022
|
| Bookrunner: | BofA Merrill Lynch
|
| Coupon: | 10¼%
|
| Price: | Par
|
| Call: | Make-whole call at Treasuries plus 50 bps until March 1, 2018, then become callable at 105.125
|
| Equity clawback: | 40% at 110.25 until March 1, 2018.
|
| Trade date: | March 23
|
| Settlement date: | March 30 with accrued interest
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC+
|
| Distribution: | Rule 144A for life and Regulation S
|
| Marketing: | Quick to market
|
| Original issue: | $805 million issue at par in February 2015
|
| Fungibility: | Add-on notes will become immediately fungible with the original notes
|
| Total issue size: | $925 million
|
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