New Issue: United Auto Group 10-year notes upsized to $300 million, yield 9 5/8%

By Paul A. Harris

St. Louis, Mo., March 12 - United Auto Group, Inc. upsized its offering of senior subordinated notes due March 15, 2012 (B3/B) to $300 million from $225 million and priced them Tuesday at par to yield 9 5/8%, according to a syndicate source.

Noting price talk of 9 5/8%-9 7/8%, the syndicate official commented that the deal priced at the tight end of talk.

Banc of America Securities and JP Morgan were joint bookrunners; ABN Amro, Bear Stearns & Co. and Merrill Lynch & Co. were co-managers.

Proceeds from the Rule 144A notes will be used to repay the company's existing senior credit facility.

Issuer:	United Auto Group
Amount:	$300 million (increased from $225 million)
Maturity:	March 15, 2012
Type:	Senior subordinated notes
Bookrunners:	Banc of America Securities, JP Morgan
Coupon:	9 5/8%
Price:	Par
Yield:	9 5/8%
Spread:	432 basis points
Call features:	Callable on March 15, 2007 at 104.813, 103.208, 101.604, par on March 15, 2010 and thereafter
Equity clawback:	Until March 15, 2005 for 35% at 109.625
Settlement date:	March 18, 2002 flat
Ratings:	Moodys: B3
	S&P: B
Rule 144A CUSIP:	909440AE9

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