New Issue: Dealer Tire prices $150 million tap of 8% notes due 2028 at 103

By Paul A. Harris

Portland, Ore., Dec. 8 – Dealer Tire, LLC priced a $150 million add-on to the Dealer Tire and DT Issuer, LLC 8% senior notes due Feb. 1, 2028 (existing ratings Caa1/CCC) at 103 in a Tuesday drive-by, according to a market source.

The issue price came at the rich end of the 102.5 to 103 price talk. Initial talk was 101.75 to 102.25.

J.P. Morgan Securities LLC is leading the sale.

The Cleveland-based manager of replacement tire and parts programs for automotive OEMs plans to use the proceeds for working capital and general corporate purposes.

Issuers:	Dealer Tire, LLC and DT Issuer, LLC
Amount:	$150 million
Maturity:	Feb. 1, 2028
Security description:	Add-on to 8% senior notes due Feb. 1, 2028
Lead:	J.P. Morgan Securities LLC
Coupon:	8%
Price:	103
First call date:	Feb. 1, 2023
Trade date:	Dec. 8
Existing ratings:	Moody's: Caa1
	S&P: CCC+
Price talk:	102.5 to 103
Marketing:	Drive-by
Original issue:	$350 million priced in January 2020
Fungibility:	Add-on notes will become fungible with original notes

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