By Paul A. Harris
Portland, Ore., Dec. 3 – Group 1 Automotive, Inc. priced an upsized $300 million issue of eight-year senior notes (Ba2/BB) at par to yield 5¼% on Thursday, according to a syndicate source.
The issue size was increased from $250 million.
The yield printed at the tight end of the 5¼% to 5½% yield talk.
Wells Fargo Securities LLC was the left bookrunner. J.P. Morgan Securities LLC and BofA Merrill Lynch are the joint bookrunners.
The Houston-based auto dealership and collision services center chain plans to use the proceeds to repay amounts outstanding under the acquisition line of its revolver, as well as to make a contribution to its floorplan offset account, and for general corporate purposes.
| Issuer: | Group 1 Automotive, Inc.
|
| Amount: | $300 million
|
| Maturity: | Dec. 15, 2023
|
| Securities: | Senior notes
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch
|
| Co-managers: | BBVA Securities Inc., Comerica Securities Inc.
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
| Spread: | 307 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Dec. 15, 2018, then callable at 103.938
|
| Equity clawback: | 35% at 105.25 until Dec. 15, 2018
|
| Change-of-control put: | 101%
|
| Trade date: | Dec. 3
|
| Settlement date: | Dec. 8
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5¼% to 5½%
|
| Marketing: | Quick to market
|
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