Group 1 Automotive to price $200 million tap of 4% notes due 2028 in Wednesday drive-by

By Paul A. Harris

Portland, Ore., Oct. 6 – Group 1 Automotive Inc. plans to price a $200 million add-on to its 4% senior notes due Aug. 15, 2028 (existing ratings Ba2/BB+) in a Wednesday drive-by following a conference call with investors, according to a syndicate source.

BofA Securities Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC and U.S. Bancorp Investments Inc. are the joint bookrunners for the Rule 144A and Regulation S offering.

PNC Capital Markets LLC, Truist Securities Inc. and Comerica Securities Inc. are the co-managers.

The notes become callable on Aug. 15, 2023 at 102. They feature a 40% equity clawback at 104 during the non-call period and have a 101% poison put.

Proceeds will be used to fund a portion of the acquisition of Prime Automotive Group, or if the acquisition is not completed, for general corporate purposes, which may include debt repayment.

Group 1 is buying Westwood, Mass.-based Prime Automotive Group for $880 million, according to an 8-K filing with the Securities and Exchange Commission.

Group 1 is a Houston-based operator of automotive dealerships and 48 collision centers.

The original $550 million issue priced in August 2020.

The add-on notes are to become immediately fungible with the original notes.

In September Group 1 Automotive received a $250 million bridge loan to support its acquisition, as reported by Prospect News.

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