Pep Boys Obtains Term Loan - Analyst Blog
19 Outubro 2012 - 2:20PM
Zacks
Pep Boys - Manny, Moe &
Jack (PBY), on October 12th, announced the completion of
the amended and restated term loan facility worth $200 million at
LIBOR (with a floor of 1.25%) plus 3.75%, due October 11, 2018. The
facility has been secured by 142 stores owned by the company. Pep
Boys also swapped the interest rate on $100 million of this term
loan facility to a fixed rate of 1.855% from the variable LIBOR
portion of the interest payment.
The company will utilize the proceeds from the increased facility
along with the cash in hand for the payment of $148 million of 7.5%
senior subordinated notes due 2014. The remaining amount will be
utilized to settle the outstanding interest rate swap of around $8
million.
The company reduced its long-term debt by $95 million, thus
achieving its targeted long-term debt reduction of roughly $100
million. The company also reduced its annual interest expense by
$11 million.
Pep Boys, in the second quarter of 2012 (ended July 28, 2012),
recorded a significant increase in its profit (excluding merger
termination fees and severance costs) to $76.7 million or $1.43 per
share from $11.9 million or 22 cents in the prior-year comparable
quarter. The results surpassed the Zacks Consensus Estimate of
$1.28 per share.
Total revenues inched up 0.6% to $525.7 million from $522.6 million
in the year-ago quarter, matching the Zacks Consensus Estimate. The
growth was mainly driven by the improvement in the company’s
service business.
Pep Boys, based in Philadelphia, supplies tires, batteries, new and
remanufactured parts for vehicles, chemicals and maintenance items,
fashion, electronic, and performance accessories. It also provides
non-automotive merchandise such as generators, power tools and
personal transportation products.
The company, which competes with O’Reilly Automotive
Inc. (ORLY), AutoZone Inc. (AZO) and
CarMax Inc. (KMX), currently retains a Zacks #3
Rank, which translates to a short-term Hold rating.
AUTOZONE INC (AZO): Free Stock Analysis Report
CARMAX GP (CC) (KMX): Free Stock Analysis Report
O REILLY AUTO (ORLY): Free Stock Analysis Report
PEP BOYS M M &J (PBY): Free Stock Analysis Report
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