American Tire Said to Eye $1 Billion Refinancing Post Bankruptcy

Bankers for American Tire Distributors Inc. are sounding out investors on a junk bond sale that would help the company refinance its debt more than two years after exiting bankruptcy, according to people with knowledge of the matter.

Goldman Sachs Group Inc. is leading talks for the roughly $1 billion deal, which is being discussed with a yield of about 8.5%, according to the people, who asked not to be identified discussing a private transaction. Talks are early and details could change, they said.

The company, one of the nation’s biggest independent sellers of replacement tires, has term loans due ...