ATD to offer $805 million in senior notes

Feb. 3, 2015

American Tire Distributors Inc. (ATD) intends to raise approximately $805 million in gross proceeds through an offering of senior subordinated notes due 2022.

The net proceeds from the notes offering would be used for two things:

- To fund the redemption of all of ATD’s outstanding 11.5% senior subordinated notes due 2018;

- To pay a cash dividend to American Tire Distributors Holdings Inc., ATD’s parent company, to enable the parent company to fund a cash dividend or other payment to certain of its security holders.

The notes to be offered have not been, and will not be, registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933.

Last month ATD's parent company reported a net loss of $14.7 million on net sales of $1.3 billion for the third quarter ended Oct. 4, 2014.