Dealer Tire Financial, LLC Announces Offering of Senior Notes

CLEVELAND--(BUSINESS WIRE)--Dealer Tire Financial, LLC (the “Company”), a leading distributor of tires and a provider of value-added consulting services to automotive dealerships and automobile original equipment manufacturers (“OEMs”), primarily in the United States, today announced that it intends to offer $500 million in aggregate principal amount of senior notes due 2031 (the “Notes”) in a private offering (the “Offering”), subject to market and other conditions. The Notes will be unsecured senior obligations of the Company and will be guaranteed by certain of the Company’s domestic subsidiaries.

The Company intends to use the net proceeds from the proposed Offering, together with cash on hand, to fund the redemption of all of the Company’s 8.000% Senior Notes due 2028 (the “Existing Notes”) outstanding and pay fees and expenses in connection with the foregoing.

The Notes and related guarantees have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), any state securities laws or the securities laws of any other jurisdiction, and may not be offered or sold in the United States, or for the benefit of U.S. persons, except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities or blue sky laws. Accordingly, the Notes and related guarantees are being offered only to persons reasonably believed to be “qualified institutional buyers,” as that term is defined under Rule 144A of the Securities Act, or outside the United States to non-“U.S. persons” in accordance with Regulation S under the Securities Act.

This press release shall not constitute an offer to sell, a solicitation to buy or an offer to purchase or sell any securities. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offer, or solicitation to buy, if at all, will be made only by means of a confidential offering memorandum. Neither shall this press release serve as notice for the redemption and is not an offer to redeem or purchase the Existing Notes or the solicitation of an offer to sell the Existing Notes.

About Dealer Tire

Dealer Tire was founded in 1999 and formed out of a family business by the former owners of Mueller Tire & Brake, a Cleveland-based retail chain originating in 1918. Today, Dealer Tire’s core business manages replacement tire and parts programs for more than 20 automotive OEMs in the U.S. and China. It serves more than 8,000 automotive dealerships from more than 40 distribution centers across the U.S. Dealer Tire’s enterprise also includes leaders across the automotive reconditioning, ecommerce and vehicle protection & warranty industry segments through its family of companies.

Forward-Looking Statements

This press release includes statements that express the Company’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking statements.” These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “seeks,” “projects,” “intends,” “plans,” “may,” “will” or “should” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts, and include statements related to the Offering and the use of proceeds therefrom. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Although we base these forward-looking statements on assumptions that we believe are reasonable when made, we caution you that forward-looking statements are not guarantees of future performance and you are cautioned to not place undue reliance on these forward-looking statements. Any forward-looking statements that we make in this press release speak only as of the date of those statements, and we undertake no obligation to update those statements or to publicly announce the results of any revisions to any of those statements to reflect future events or developments.