Monro Muffler Brake, Inc. Enters into New Five-Year, $600 Million Senior Secured Revolving Credit Facility Agreement with Nine Banks
January 29, 2016 at 12:45 am IST
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On January 25, 2016, Monro Muffler Brake Inc. entered into a new five-year, $600 million Senior Secured Revolving Credit Facility agreement with nine banks. Interest only is payable monthly throughout the Credit Facility's term. The Credit Facility increases the company's current borrowing capacity by $350 million to $600 million and includes an accordion feature permitting the company to request an increase in availability of up to an additional $100 million, an increase of $25 million from the prior financing agreement.
The expanded facility bears interest at 75 to 175 basis points. The Credit Facility contains standard terms for a credit facility of this type, generally consistent with the terms of the company's prior credit facility, including covenants, events of default and acceleration provisions.
Monro, Inc. is an operator of retail tire and automotive repair stores in the United States. The Company offers replacement tires and tire related services, automotive undercar repair services, and a range of routine maintenance services, primarily on passenger cars, light trucks, and vans. The Company also provides other products and services for brakes; mufflers and exhaust systems, and steering, drive train, suspension, and wheel alignment. The Companyâs retail tire and automotive repair stores operate primarily under the brands Monro Auto Service and Tire Centers, Tire Choice Auto Service Centers, Mr. Tire Auto Service Centers, Car-X Tire & Auto, Tire Warehouse Tires for Less, Ken Toweryâs Tire & Auto Care, Mountain View Tire & Auto Service, and Tire Barn Warehouse. It has approximately 1,288 Company-operated retail stores located in 32 states and 50 Car-X franchised locations. Its subsidiaries include Monro Service Corporation; Car-X, LLC, and MNRO Holdings, LLC.