By Paul A. Harris
Portland, Ore., Sept. 14 – Morgan Automotive Group priced an upsized $300 million add-on to the LCM Investments Holdings II, LLC 4 7/8% senior notes due May 1, 2029 (B2/BB-) at 102 to yield 4.561% in a Tuesday drive-by, according to an informed source.
The size of the add-on increased from $270 million.
The price came at the rich end of the 101.5 to 102 price talk.
BofA Securities Inc. was the bookrunner.
The Tampa, Fla.-based automotive retailer plans to use the proceeds to fund the acquisition of the Reeves dealership assets and to pay down the used vehicle floor plan facility, with any remaining proceeds to be used for general corporate purposes. The additional proceeds resulting from the $30 million upsize of the deal will also be applied to the used vehicle floor plan facility.
| Issuer: | LCM Investments Holdings II, LLC
|
| Amount: | $300 million, increased from $270 million
|
| Maturity: | May 1, 2029
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| Security description: | Add-on to 4 7/8% senior notes due May 1, 2029
|
| Bookrunner: | BofA Securities Inc.
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| Coupon: | 4 7/8%
|
| Price: | 102
|
| Yield: | 4.561%
|
| Spread: | 347 bps
|
| First call: | May 1, 2024 at 102.438
|
| Trade date: | Sept. 14
|
| Settlement date: | Sept. 28
|
| Ratings: | Moody's: B2
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 101.5 to 102
|
| Marketing: | Quick-to-market
|
| Original issue: | $700 million priced in April 2021
|
| Fungibility: | Add-on notes to become fungible with original notes upon closing of the acquisition
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