Pep Boys closed on an amended $200 million loan on Monday.
Secured by the real estate underlying 142 of the company’s owned stores, Pep Boys said the loan – along with cash on hand – will be used to retire older debt (due in 2014) and settle the company’s outstanding interest rate swap.
The company says it has reduced its long-term debt by approximately $100 million and reduced its annual interest expense by approximately $11 million.