AM General talks $600 million eight-year secured notes in 9½% area; pricing Monday

Paul A. Harris

Portland, Ore., Sept. 18 – AM General talked its $600 million offering of eight-year senior secured notes (B2/B+) to yield in the 9½% area, according to a market source.

Official talk comes tight to initial guidance in the high 9% area to 10%.

The Rule 144A for life deal, backing the buyout of the company, is expected to price on Monday.

Deutsche Bank Securities Inc. is the left lead bookrunner. UBS Securities LLC, BNP Paribas Securities Corp. and Nomura Securities International Inc. are the joint bookrunners.

The notes become callable after three years at par plus 50% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

The issuing entity is PM General Purchaser LLC.

Proceeds will be used to support the acquisition of the South Bend, Ind.-based heavy vehicle and contract automotive manufacturer by affiliates of KPS Capital Partners.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.