American Tire Distributors (ATD), North America's largest replacement tire distributor, withdrew its plans for an initial public offering on Monday.
The company originally filed in June for an IPO that we estimate could have raised $500 million or more. In early February, TPG sold about half of its 94% stake in ATD to Ares (ARES) for $620 million. At the same time, it issued $805 million in junk bonds (rated CCC+ by S&P) to refinance $425 million in 11.5% 2018 notes and pay a $370 million dividend to TPG. The private equity firm originally acquired ATD from Berkshire Partners and others for $1.3 billion in 2010.
The Huntersville, NC-based company was founded in 1935 and booked $4.7 billion in sales for the 12 months ended September 30, 2014. ATD. BofA Merrill Lynch, Deutsche Bank, Goldman Sachs, Barclays, J.P. Morgan and UBS Investment Bank were set to be the joint bookrunners on the deal.
