CHARLOTTE, N.C. — American Tire Distributors Inc. (ATD) is planning a debt securities offer worth $100 million — in the form of additional 10.25-percent senior subordinated notes due 2022 — in order to repay current debt under another credit facility.
The notes will be guaranteed on a senior subordinated unsecured basis by ATD's parent company, American Tire Distributors Holdings Inc., and certain of its other subsidiaries, ATD said.
The notes are not yet available; ATD did not say when they would become available.
The notes are being sold in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the Securities Act), and to non-U.S. persons outside the U.S. under Regulation S under the Securities Act.
The notes have not been registered under the Securities Act, 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.
ATD said it intends to use the proceeds from the sale of the notes to repay indebtedness outstanding under its U.S. dollar-denominated assets-based lending credit facility and to pay related fees and expenses. It did not elaborate on the scale of that indebtedness.