The Pep Boys — Manny, Moe & Jack (NYSE: “PBY”), the nation’s leading automotive aftermarket service and retail chain, today announced that it had closed on its amended and restated term loan facility. The amended and restated facility is in the principal amount of $200,000,000, bears interest at LIBOR (with a floor of 1.25%) plus 3.75%, matures on October 11, 2018 and is secured by the real estate underlying 142 of the Company’s owned stores. In connection with the facility, the Company entered into interest rate swaps that convert the variable LIBOR portion of the interest payments due on $100,000,000 of the facility to a fixed rate of 1.855%. Proceeds from the increase in the size of the facility (approximately $53,000,000) together with cash on hand were used to satisfy and discharge all of the Company's outstanding 7.5% Senior Subordinated Notes due 2014 (approximately $148,000,000) and to settle the Company's outstanding interest rate swap (approximately $8,000,000). Pro forma for the transaction, the Company has reduced its long-term debt by approximately $100,000,000 and reduced its annual interest expense by approximately $11,000,000. Wells Fargo Securities, LLC and BofA Merrill Lynch served as Joint Lead Arrangers and Joint Book Runners on the transaction. Since 1921, Pep Boys has been the nation’s leading automotive aftermarket chain. With approximately 7,200 service bays in more than 735 locations in 35 states and Puerto Rico, Pep Boys offers name-brand tires; automotive maintenance and repair; parts and expert advice for the Do-It-Yourselfer; commercial auto parts delivery; and fleet maintenance and repair. Customers can find the nearest location by calling 800-PEP-BOYS (800-737-2697) or by visiting http://www.pepboys.com. Certain statements contained herein constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. The word “guidance,” “expect,” “anticipate,” “estimates,” “forecasts” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements include management’s expectations regarding implementation of its long-term strategic plan, future financial performance, automotive aftermarket trends, levels of competition, business development activities, future capital expenditures, financing sources and availability and the effects of regulation and litigation. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. The Company’s actual results may differ materially from the results discussed in the forward-looking statements due to factors beyond the control of the Company, including the strength of the national and regional economies, retail and commercial consumers’ ability to spend, the health of the various sectors of the automotive aftermarket, the weather in geographical regions with a high concentration of the Company’s stores, competitive pricing, the location and number of competitors’ stores, product and labor costs and the additional factors described in the Company’s filings with the SEC. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.