Bank of America finances the acquisition of The Hercules Tire & Rubber Company by American Tire Distributors

January 31, 2014

Client: Bank of America, N.A.

On January 31, 2014, American Tire Distributors, Inc. and its various subsidiaries (“American Tire”) amended and restated their asset-based credit facilities to provide for an increase in commitments with respect to the existing Canadian revolving facility and the existing U.S. first-in last-out facility, as well as the establishment of a new Canadian first-in last-out facility. The credit facilities were made available by a syndicate of lenders led by Bank of America, N.A, and, in total, are in excess of $1.06 billion.

Simultaneously with the closing of the amended credit facilities, American Tire purchased all of the issued and outstanding common shares of The Hercules Tire & Rubber Company (“Hercules”). Hercules is engaged in the business of purchasing, marketing, distributing and selling after-market replacement tires for passenger cars, trucks, and certain off road vehicles to tire dealers, wholesale distributors, retail distributors and others in the United States, Canada and internationally.

American Tire and its subsidiaries are primarily engaged in the wholesale distribution of tires, custom wheels and accessories and related tire supplies and tools. The group’s customer base is comprised primarily of independent tire dealers with the remainder of other customers representing various national and corporate accounts. The acquisition of Hercules marks an expansion of American Tire’s business in the United States and Canada.

Bank of America, N.A. was represented in Canada by Norton Rose Fulbright Canada LLP with a team comprised of David Amato and Matthew Lippa.