ATD refinances its debt structure
American Tire Distributors Inc. (ATD) successfully completed the refinancing of its debt capital structure, including its existing asset line of credit, as well as the replacement and issuance of a new B term loan.
“This transaction reflects the financial momentum and progress of ATD over the past few years, delivering solid revenue growth, productivity and speed of costs and capital, profit growth, generation of cash flow. free cash flow and organic deleveraging, ”ATD officials said.
“This refinancing is made possible by the company’s ability to capitalize on attractive financial markets, as well as by the market’s recognition of the company’s enhanced financial position and performance, as evidenced by the recent revaluations of ATD ratings. by Moody’s, Standard & Poor’s and initial coverage by Fitch Evaluations. ”
“This is truly a milestone event for ATD, demonstrating increased confidence and support for our company within the investment community and positioning ATD with a balance sheet and capital structure that prepares the company for continued success,” said Bill Williams, chief financial officer of ATD.
“Operating in an industry that continues to change rapidly and undergoing its own transformation, ATD will have a significantly strengthened financial profile that will benefit our entire business, including ret
Changes to ATD’s debt capital structure include amending and extending its asset-based loan facility with an expanded $ 1.2 billion asset line of credit maturing in five years, as well as ‘a new term loan B maturing in seven years. The proceeds from the new issue will be used to withdraw the Company’s existing term and ABL facilities.
“The benefits of this transaction include an improved financial position for ATD, including lower investment costs for the company, longer maturity dates for its debt securities and improved liquidity,” added the ATD officials.
“Our stable balance sheet provides the financial momentum needed to accelerate our strategic agenda,” said Stuart Schuette, CEO and President of ATD. “This means allocating capital to opportunities for organic growth and to strategic opportunities that create value. We will continue to grow our business by investing in technologies that will improve our logistics and supply chain management capabilities.
“As a company, we are making tremendous strides in leading the pace of change in the automotive aftermarket industry. We remain focused on growing our business and deploying new tools and capabilities to help our clients and associates be more successful. We must thank our associates for helping ATD make significant progress in driving our transformation and strategy. ”