ROANOKE, Va. (Dec. 6, 2013) — Advance Auto Parts Inc. has entered into a new $1 billion unsecured revolving credit facility that will mature in December 2018.
Roanoke-based Advance said the deal includes a $700 million unsecured term loan, maturing five years from the date of funding. These facilities replace the company's existing $750 million revolving credit facility, which matures in May 2016.
Advance expects to use the proceeds of the loans to finance its recently announced acquisition of Raleigh, N.C.-based OE and replacement parts distributor General Parts International Inc. (GPII) and for general corporate purposes.
“We are pleased to have completed our financing for the pending strategic acquisition of General Parts and remain committed to maintaining our investment grade credit ratings,” said Mike Norona, Advance's executive vice president and CFO.
The interest rates on borrowings under the facilities are based on adjusted LIBOR plus a margin or, at the company's option, on an alternate base rate plus a margin, Advance said, with the margins for both types of borrowings based on the company's credit ratings.
As of Oct. 5, Advance operated 4,018 stores in 39 states, Puerto Rico and the Virgin Islands.
GPII, founded in 1962 by Chairman O. Temple Sloan Jr., is a distributor and retailer of replacement parts, supplies, tools and equipment for automobiles, light and heavy trucks, off-road equipment, buses, recreational equipment and agricultural equipment. As of Sept. 30, the company operated the CARQUEST auto parts distribution network, with 38 distribution centers, 1,246 company operated stores across the U.S. and Canada, and 1,418 independently owned CARQUEST locations primarily in the U.S. and Canada. It also operates WORLDPAC, an importer and distributor of original equipment and quality aftermarket replacement automotive parts to import specialists in North America and Puerto Rico operating four main distribution centers and 102 facilities across the U.S. and Canada.