TBC to get $208 million loan via JP Morgan

By Sara Rosenberg

New York, March 26 - TBC Corp. expects to obtain a new $208 million five-year senior credit facility consisting of a revolver of up to $121 million and term loans of up to $87 million. JP Morgan has arranged to provide this new financing.

Furthermore, The Prudential Capital Group will provide the company with an additional $50 million of long-term capital.

Proceeds from the new financing transactions will be used to help fund the acquisition of Merchant's Inc. as well as future acquisitions and internal growth initiatives.

The acquisition of Merchant's will be an all-cash transaction, with approximately $57.5 million being paid within 30 days of closing and additional up to $15 million being paid in future years based upon the performance of the acquired stores. The transaction, which is subject to approval under the Hart-Scott-Rodino Act as well as other customary closing conditions, is expected to be completed by April 1.

TBC is a Memphis, Tenn. marketer of automotive replacement tires. Merchant's is a Manassas, Va. tire retailer and automotive service provider.

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