American Tire Distributors will offer $250 million in senior secured notes to help its parent company finance part of its recent acquisition.
Last month, ATD was acquired by equity company TPG Capital in a $1.3 billion deal. The sale is set to close by mid-year.
Under the note offering, ATD will “offer $250 million aggregate principal amount of senior secured notes due 2017,” the net proceeds of which will be used to “finance in part the acquisition of American Tire Distributors Holdings by certain investment funds affiliated with TPG Capital and to repay a portion of the Issuer’s and ATD Holdings’ existing debt and to pay fees and expenses in connection with the transactions.”
The sale to TPG Capital ends ATD’s ownership by a consortium of Investcorp, Berkshire Partners and Greenbriar Equity Group, which bought ATD in 2005 for an estimated $500 million.
ATD owns and operates 83 distribution centers and services dealers in 37 states.