ATD to offer $250 million in senior notes
American Tire Distributors Holdings Inc. has announced that its American Tire Distributors Inc. (ATD) subsidiary intends to offer $250 million aggregate principal amount of senior secured notes due 2017.
In a statement released earlier today, May 17, the company says it will use net proceeds from the offering to finance "in part the acquisition of Holdings by certain investment funds affiliated with TPG Capital and to repay a portion of the issuer's and Holdings' existing debt to pay fees and expenses in connection with the transactions."
In late April, ATD announced that it had entered into an agreement to be purchased by TPG Capital, a private equity group based in Ft. Worth, Texas. (For the full report, see TPG Capital to acquire ATD for $1.3 billion.)
"The notes have not been registered under the Securities Act of 1933, as amended, and, unless so registered, may not be offered or sold in the U.S. absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws."