Pep Boys to repay revolver, other bank debt with stock sale proceeds

New York, March 19 - The Pep Boys - Manny, Moe & Jack said it will repay the entire outstanding balance on its revolving credit facility and $22.4 million principal amount outstanding under its senior secured equipment and real estate credit facility using proceeds from a sale of common stock.

Remaining proceeds will be used for store redesigns.

The Philadelphia auto parts retailer and auto repair company sold 4.25 million shares at a price of $24.75.

It says net proceeds will be $99.4 million, increasing to $108.7 million if the greenshoe is exercised.

The Pep Boys noted that the revolving credit facility together with available cash was used to repay the $57 million of medium-term notes that matured March 3 and March 10.

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