Pep Boys Completes New $368 Million Credit Facilities
18 September 2000
Pep Boys Completes New $368 Million Credit Facilities; Plans to Retire Convertible Debt with Cash
Business Editors/Automotive WritersPHILADELPHIA--Sept. 18, 2000--The Pep Boys - Manny, Moe & Jack announced that it has completed the restructuring of its revolving line of credit and certain operating leases.
The new facilities, which will be secured primarily with the Company's merchandise inventory, will provide up to $368,000,000 in credit availability.
The new $225,000,000 revolving line of credit, which has an interest rate equal to the London Interbank Offered Rate ("LIBOR") plus 1.75%, replaces the $125,000,000 facility, which had an interest rate of LIBOR plus 1.90%.
The new $143,000,000 of operating leases, which have an interest rate equal to LIBOR plus 1.85%, replaces $143,000,000 of leases, which had an interest rate of LIBOR plus 2.27%.
The Company plans to repurchase, in cash, the zero coupon convertible Liquid Yield Option Notes ("LYONs") that can be put back to the Company in September 2001. The Company may repurchase the LYONs in the open market, from time to time, prior to the put date.