PHILADELPHIA -- Pep Boys announced late last week that it closed a $200 million senior secured term loan facility syndicated by Wachovia Capital Markets, LLC.

Proceeds of the facility were used to satisfy and discharge $43 million and $100 million in outstanding medium term notes that mature in 2006 (including approximately $5 million in interest expense) and to reduce borrowings under the company's revolving credit facility. To repay the $100 million in outstanding medium term notes, Pep Boys was required to settle the remarketing option attached to such notes, and will record the approximately $8.2 million cost in its fourth quarter.

The facility has a stated maturity of January 27, 2011, is secured by certain of the company's real estate, amortizes 1 percent per year until maturity and is pre-payable at any time without penalty. The facility, as with all of the other present indebtedness of the company, contains no ongoing operating performance covenants so long as availability under the company's $357.5 million revolving credit facility remains above $50 million. The facility contains customary representations and covenants of a senior financing, including the timely repayment or refinancing of the company's 4.25 percent Convertible Senior Notes due June 2007.

The facility also has an expansion feature, which allows the company to expand the size of the facility by a further $125 million dollars, subject to the addition of further collateral and successful syndication.

To learn more about Pep Boys, go to: pepboys.com.

_______________________________________

Click here to view the rest of today's headlines.