Pep Boys Closes $200 Million Financing; No Further Maturities Until 2007
January 27 2006 - 11:45AM
Business Wire
The Pep Boys - Manny, Moe & Jack (NYSE:PBY), the nation's
leading automotive aftermarket retail and service chain, announced
today that it closed a $200 million senior secured term loan
facility syndicated by Wachovia Capital Markets, LLC. The facility
has a stated maturity of January 27, 2011, is secured by certain of
the Company's real estate, amortizes 1% per year until maturity and
is pre-payable at any time without penalty. The facility, as with
all of the other present indebtedness of the Company, contains no
ongoing operating performance covenants so long as availability
under the Company's $357.5 million revolving credit facility
remains above $50 million. The facility contains customary
representations and covenants of a senior financing, including the
timely repayment or refinancing of the Company's 4.25% Convertible
Senior Notes due June 2007. The facility also has an expansion
feature which allows the Company to expand the size of the facility
by a further $125 million dollars, subject to the addition of
further collateral and successful syndication. Proceeds were used
to satisfy and discharge $43 million and $100 million in
outstanding medium term notes that mature in 2006 (including
approximately $5 million in interest expense) and to reduce
borrowings under the Company's revolving credit facility. To repay
the $100 million in outstanding medium term notes, the Company was
required to settle the remarketing option attached to such notes,
and will record the approximately $8.2 million cost in its fourth
quarter. About Pep Boys Pep Boys has 593 stores and more than 6,000
service bays in 36 states and Puerto Rico. Along with its vehicle
repair and maintenance capabilities, the Company also serves the
commercial auto parts delivery market and is one of the leading
sellers of replacement tires in the United States. Customers can
find the nearest location by calling 1-800-PEP-BOYS or by visiting
pepboys.com.
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