American Tire Distributors Inc. (ATD) has raised $855 million - $50 million more than originally sought – through the offering of senior subordinated notes due 2022.
In an 8-K report filed Feb. 26 with the U.S. Securities and Exchange Commission, ATD says it entered into a purchase agreement for the additional $50 million aggregate principal amount. That same filing says the sale closed a day earlier, on Feb. 25, “in connection with the closing of the previously announced transaction with a fund managed by the Private Equity Group of Ares Management LP.”
The proceeds from the additional notes were used to repay outstanding indebtedness under ATD’s ABL credit facility.
Another 8-K report filed March 3 says ATD has the option to redeem some or all of the notes at any time prior to March 1, 2018. In addition, prior to that date the company may “on one or more occasions, redeem up to 40% of the aggregate principal amount of the notes with the proceeds of certain equity offerings at a redemption price equal to 110.25% of the principal amount of the notes redeemed, plus accrued and unpaid interest.”
The notes come with some restrictive covenants, including that ATD make an offer to repurchase the notes if it “sells certain assets or experiences specific kinds of change of control.”
Read more about ATD’s recent financial dealings:
