By Paul A. Harris
Portland, Ore., April 20 – Morgan Automotive Group priced an upsized $700 million issue of eight-year senior notes (B2/BB-) at par to yield 4 7/8% on Tuesday, according to market sources.
The issue size increased from $650 million.
The yield printed at the tight end of the 4 7/8% to 5 1/8% yield talk. Initial guidance was in the low-5% area.
The deal was heard to have played to a $3.9 billion book, according to a trader, who added that the new 4 7/8% notes due 2029 popped to 102 bid, 102½ offered.
BofA Securities Inc. ran the books.
The notes were sold via LCM Investments Holdings II, LLC.
The Tampa, Fla.-based automotive retailer plans to use the proceeds plus additional borrowings under its amended credit facilities to pay off its cap loan facility and pay down its used vehicle floorplan facility, as well as for near-term real estate construction and to fund distributions to partners, including payments of certain taxes.
| Issuer: | LCM Investments Holdings II, LLC
|
| Amount: | $700 million, increased from $650 million
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| Maturity: | May 1, 2029
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| Securities: | Senior notes
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| Bookrunner: | BofA Securities Inc.
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| Coupon: | 4 7/8%
|
| Price: | Par
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| Yield: | 4 7/8%
|
| Spread: | 353 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until May 1, 2024, then callable at 102.432
|
| Trade date: | April 20
|
| Settlement date: | April 27
|
| Ratings: | Moody's: B2
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 4 7/8% to 5 1/8%
|
| Marketing: | Roadshow
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