Advance Auto Parts announced Dec. 5 that it has entered into a new $1 billion unsecured revolving credit facility, maturing in December 2018, and a $700 million unsecured term loan, maturing five years from the date of funding.
These facilities replace the company’s existing $750 million revolving credit facility, which matures in May 2016. The proceeds of the loans are expected to be used to finance the recently announced acquisition of General Parts International and for general corporate purposes.
“We are pleased to have completed our financing for the pending strategic acquisition of General Parts and remain committed to maintaining our investment grade credit ratings,” said Mike Norona, Executive Vice President and Chief Financial Officer of Advance Auto Parts.
The interest rates on borrowings under the facilities are based on adjusted LIBOR plus a margin or, at the company’s option, on an alternate base rate plus a margin. The margins for both types of borrowings are based on the company’s credit ratings.
As of October 5, 2013, Advance Auto Parts operated 4,018 stores in 39 states, Puerto Rico and the Virgin Islands. For more information visit www.AdvanceAutoParts.com.
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