Moody’s provides B2 to American Tire loan

Moody's Investors Service said it assigned a B2 rating to American Tire Distributors, Inc.'s proposed $720 million senior secured term loan due 2021.

At the same time, the agency affirmed the company's B2 corporate family rating, B2-PD probability of default rating and the Caa1 rating on senior subordinated notes.

The speculative grade liquidity rating was also affirmed at SGL-3.

The outlook remains stable.

Proceeds, along with modest cash, will be used to retire the company's existing term loan due 2018 (about $714 million outstanding) and pay related fees and expenses.

Concurrently, American Tire plans to amend its asset-based credit facility (unrated), increasing the capacity under its Canadian revolver by C$40 million and extending maturities on all tranches to 2020.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.