Simpson Thacher recently represented American Tire Distributors, Inc. (“American Tire”) in connection with an offering of $120 million additional aggregate principal amount of 10.25% senior subordinated notes due 2022. The notes were issued as additional notes under an indenture pursuant to which American Tire previously issued $855 million and $75 million aggregate principal amount of 10.25% senior subordinated notes due 2022 in February 2015 and June 2015, respectively. The offering was conducted in reliance on Rule 144A and Regulation S under the Securities Act of 1933, as amended.
American Tire intends to use the proceeds from the offering to repay outstanding borrowings under its U.S. dollar denominated ABL credit facility and to pay related fees and expenses.
American Tire is the leading replacement tire distributor in North America, providing a wide range of products and services to enable tire retailers to effectively service and grow sales to consumers. Through its network of more than 140 distribution centers in the United States and Canada, American Tire offers access to an extensive breadth and depth of inventory, representing approximately 70,000 stock-keeping units (SKUs) to more than 80,000 customers.
The Simpson Thacher team included Ed Tolley, Brian Rosenzweig, Clark Warthen and Sung Jin (Capital Markets); Brian Steinhardt and Eli Isak (Banking and Credit); Jon Cantor and Morgan Otway (Tax); Tim Mulvihill (Environmental); Eric Wolf (ECEB) and Linda Nyberg (IP).