American Tire Distributors Reaches Agreement in Principle with Term Loan Lenders and Receives Approval of All First Day Relief

HUNTERSVILLE, N.C., Oct. 5, 2018 /PRNewswire/ -- American Tire Distributors, Inc. ("ATD" or the "Company") today announced that it has reached an agreement in principle with holders of a majority of its term loans to support the previously announced restructuring support agreement, which would reduce the Company's debt by approximately $1.1 billion and increase its financial flexibility as it continues its ongoing transformation. The agreement results in the support of all three categories of the Company's debt holders.

"We are pleased to have the support of our term loan lenders for our previously announced restructuring support agreement, which will help to facilitate a fully consensual court-supervised process," said Stuart Schuette, Chief Executive Officer of ATD. "The strong support by our key financial stakeholders for our recapitalization plan represents an important vote of confidence in our business and our future. We intend to move quickly through this court-supervised process and continue our ongoing transformation to lead change in our industry."

Under the terms of the agreement, which is subject to court approval and final documentation, the term loan lenders will, among other things:

• Provide half of the $250 million in new financing to support ATD's continuing operations.
• Extend the maturity of the term loan facility by three years.
• Participate in exit financing upon ATD's completion of the court-supervised process.

Approval of First Day Relief

The Company also announced that it has received court approval of all of its key First Day motions that will support the business. The approved motions give the Company the authority to, among other things, enter into post-petition financing, continue to utilize its cash management system and continue to pay critical suppliers and vendors in full under pre-existing trade terms. The Company intends to meet its obligations in the ordinary course and expects its operations to continue uninterrupted throughout the court-supervised process.

"The Court's approvals of our First Day motions are an important step forward that will allow the Company to continue meeting our obligations and providing our customers the unparalleled selection and service they have come to expect from us," Mr. Schuette continued. "This positive momentum would not be possible without the commitment of our associates. On behalf of our management team, we thank them for their hard work and continued focus on enabling ATD to support our customers across all channels, and the consumers they serve."

Additional Information

As previously announced on October 4, 2018, ATD has entered into a definitive agreement with approximately 75% of its bondholders on the terms of a recapitalization that would reduce the Company's debt by approximately $1.1 billion. To implement the definitive agreement, the Company voluntarily filed for reorganization under Chapter 11 in the District of Delaware. ATD's operations across its distribution network are continuing to serve customers without disruption as it moves through this process.

Additional information is available on ATD's restructuring website at www.ATDrecapitalization.com or by calling ATD's restructuring hotline, toll-free in the U.S., at (866) 967-0495. For calls originating outside of the U.S., please dial +1 (310) 751-2695. Questions can also be submitted by email to [email protected]. Court filings and other documents related to the court-supervised proceedings are available on a separate website administered by ATD's claims agent, KCC, at www.kccllc.net/ATD.

About American Tire Distributors

American Tire Distributors is one of the largest independent suppliers of tires to the replacement tire market. It operates more than 140 distribution centers, including 25 distribution centers in Canada, serving approximately 80,000 customers across the U.S. and Canada. The Company offers an unsurpassed breadth and depth of inventory, frequent delivery and value-added services to tire and automotive service customers. American Tire Distributors employs approximately 5,000 associates across its distribution center network, including approximately 800 associates in Canada.

Media Contacts

Jessica Kessel 
Communications Manager, ATD
(704) 912-3495
[email protected]  

Ed Trissel / Aaron Palash / Andrew Squire
Joele Frank Wilkinson Brimmer Katcher
(212) 355-4449

Global Media Contact

Belinda Ma
Allison+Partners
+886 2 2775 5819
[email protected]

SOURCE American Tire Distributors

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