NEW YORK Nov 6 Automotive parts maker Advance Auto Parts is expected to tap the markets Friday with a $1.6 billion credit facility, sources told Thomson Reuters LPC. JP Morgan, Bank of America Merrill Lynch, SunTrust and Wells Fargo are leading the deal.
The facility comprises a $1 billion, five-year revolver and a $600 million, five-year term loan. The facility will launch via a conference call at 9 a.m. EST. No further information was available by press time.
The loans will back the company's $2.04 billion acquisition of General Parts International Inc (GPII).
The company said it intends to finance the all-cash acquisition through a combination of senior notes, bank debt and existing cash on hand. A senior notes offering and bank debt syndication were expected to occur prior to closing.
Advance Auto Parts is a provider of automotive aftermarket parts, accessories, batteries and maintenance items. GPII is a privately held distributor and supplier of original equipment and aftermarket replacement products for commercial markets operating under the CARQUEST and WORLDPAC brands. The transaction has been approved by the boards of directors of both companies.