American Tire Distributors Successfully Completes Recapitalization Process

Moves Forward with Game-Changing Transformation After Reducing Debt by Approximately $1.1 Billion

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Dec 21, 2018, 18:19 ET

HUNTERSVILLE, N.C., Dec. 21, 2018 /PRNewswire/ -- American Tire Distributors, Inc. ("ATD" or the "Company") today announced that it has successfully completed its financial recapitalization and emerged from Chapter 11 a stronger company, having reduced its debt by approximately $1.1 billion. In connection with emergence, ATD is issuing payment for all pre-petition obligations currently due. The Company recapitalized on a fully consensual basis, with the support of all of its key financial stakeholders, as well as its vendors and customers, and moves forward with $1.005 billion of committed exit financing arranged by Wells Fargo Capital Finance to support operations and future growth initiatives.

With its recapitalization complete, ATD is moving forward as the largest wholesaler in the replacement tire industry. It offers an unparalleled selection of more than 50,000 SKUs, data-driven technologies to maximize customer profits, industry-leading technology platforms, state-of-the-art logistics and a variety of marketing support programs.

Looking ahead, ATD is continuing its transformation to create even more value for customers and manufacturers through digital tools powered by advanced analytics. The Company intends to continue driving growth, generating strong cash flows and deepening its value proposition for its customers and manufacturer partners by investing in the strategic initiatives, technologies and talent that are fueling its transformation.

"Today marks a new beginning for ATD. We are a stronger company with the financial flexibility to build on an 80-year history of leadership and innovation," said Stuart Schuette, Chief Executive Officer of ATD. "We are laser-focused on delivering greater value for our customers and manufacturer partners, with differentiated capabilities based on advanced analytics. Our ongoing transformation means that ATD will remain the most connected and insightful automotive solutions provider for decades to come."

Mr. Schuette continued, "All of us at ATD would like to thank our customers and manufacturer partners for their continued support. I also am deeply grateful to our team of more than 5,000 associates across North America. They are the most dedicated and experienced professionals in the industry. They live our values every day by focusing their full attention on keeping our customers thriving and driving into the future."

Kirkland & Ellis LLP is serving as legal counsel to ATD, AlixPartners LLP is serving as operational advisor and Moelis & Company LLC is serving as financial advisor.

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
Director, Corporate Communications, ATD
(704) 912-3495
[email protected]

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

Global Media Contact

Sunny Guan
Allison+Partners
+86 21 6230 8516
[email protected]

SOURCE American Tire Distributors