PHILADELPHIA — Pep Boys has closed a new $300 million senior secured revolving credit facility with a syndicate led by Bank of America, Wells Fargo and Regions Bank. Borrowings under the new five-year facility, which is secured by inventory, receivables and general intangibles, bear an initial interest rate of London Interbank Offered Rate (LIBOR) plus 3.00 percent.
The new facility replaces the company’s prior facility that was scheduled to expire on Dec. 9.
CFO Ray Arthur said, “We are pleased with the confidence expressed in Pep Boys by our syndicate banks by virtue of closing this facility despite the tight credit markets. It further demonstrates our strong liquidity position and ability to fund the initiatives of our long-term strategic plan.”