Pep Boys Retires $70 Million of Senior Debt
25 September 2000
Pep Boys Retires $70 Million of Senior Debt; Plans to Retire Convertible Debt with Cash
Business EditorsPHILADELPHIA--Sept. 25, 2000--The Pep Boys - Manny, Moe & Jack announced that it has retired $70,000,000 of its Senior Notes, at par, using the proceeds from its new $225,000,000 revolving line of credit with Congress Financial Corporation which has an interest rate of LIBOR plus 1.75%.
The revolving credit line was obtained at the same time the Company obtained $143,000,000 of operating leases arranged through First Union National Bank.
The retired notes were issued in a private placement in February 1999 in two tranches. The first tranche was for $45,000,000 and had a coupon of 8.45% with maturity in 2011. The second tranche was for $25,000,000 and had a coupon of 8.30% with maturity in 2009.
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.
Pep Boys is the nation's leading full-service automotive aftermarket chain with 665 stores and nearly 7,000 service bays in 37 states and Puerto Rico.