CLEVELAND — Dealer Tire L.L.C. is planning raise $150 million in new capital via a senior notes offering.
The company, which specializes in supplying tires to automotive dealerships, said it will use the proceeds of the offering for working capital and other general corporate purposes.
The new offering is an extension of a $350 million senior notes offer, issued in February 2020 and due in 2028, that Dealer Tire said would be used to help finance its acquisition of Dent Wizard International Corp., a national provider of automotive reconditioning services and vehicle protection products.
DT Issuer L.L.C., a Dealer Tire subsidiary, will act as co-issuer in the offering.
Dealer Tire did not specify terms of the new offering. The earlier offering offered an 8% principal return.
The notes will be unsecured senior obligations of the issuers.
Cleveland-based Dealer Tire — founded in 1999 by the then owners of the former Mueller Tire & Brake — manages replacement tire and parts programs representing more than 20 automotive OEM brands in the U.S. It serves more than 8,000 automotive dealerships from over 40 distribution centers across North America, generating sales of over $1 billion annually.