Jan. 30 (Bloomberg) -- Pep Boys - Manny, Moe & Jack, a Philadelphia-based auto parts retailer, obtained commitments for $875 million in loans to support its acquisition by Gores Group LLC.
Barclays Plc, Credit Suisse Group AG and Wells Fargo & Co. are providing the financing, the company said in a regulatory filing today.
Gores Group is acquiring Pep Boys for $15 a share, which is 24 percent higher than the company’s closing price on Jan. 27, according to a statement distributed today by Business Wire. The deal values the company at $1 billion, including debt. The transaction is expected to be completed by the end of the fiscal second quarter of 2012, according to the statement.
Steve Lipin, a spokesman for Pep Boys, didn’t immediately return a telephone call seeking comment.
Pep Boys obtained a $320 million term loan B in 2006 that matures in October next year, according to data compiled by Bloomberg. The company also has a $300 million revolving line of credit that comes due in July 2016, the data show.
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