By Paul A. Harris
Portland, Ore., Sept. 14 – Asbury Automotive Group, Inc. priced $250 million of senior notes (B1/BB) by tapping two tranches of existing notes in a Monday drive-by, according to market sources.
The deal included a $125 million add-on to the 4½% senior notes due March 1, 2028, callable after March 1, 2023, which priced at 101 to yield 4.341%, at the rich end of the 100.5 to 101 price talk.
It also included a $125 million add-on to the 4¾% senior notes due March 1, 2030, which priced at 101.75 to yield 4.52%, at the rich end of the 101.25 to 101.75 price talk.
BofA Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the joint bookrunners.
The Stamford, Conn., automobile retailer plans to use the proceeds to repay a $150 million 4% promissory note due August 2021 and a $50 million 4% promissory note due February 2022 used to finance the acquisition of Park Place Dealership Group, as well as to repay approximately $50 million under its revolver and for general corporate purposes.
The original $525 million of 4½% notes and $600 million of 4¾% notes priced in February 2020.
The add-on notes in both tranches are to become immediately fungible with existing notes.
| Issuer: | Asbury Automotive Group, Inc.
|
| Amount: | $250 million
|
| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Co-managers: | Santander Investment Securities Inc., Truist Securities Inc. and U.S. Bancorp Investments Inc.
|
| Trade date: | Sept. 14
|
| Settlement date: | Sept. 16
|
| Ratings: | Moody's: B1
|
| S&P: BB
|
| Distribution: | Rule 144A for life and Regulation S
|
| Marketing: | Drive-by
|
|
|
| Add-on to 4½% notes
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| Amount: | $125 million
|
| Issue: | Add-on to 4½% senior notes due March 1, 2028
|
| Maturity: | March 1, 2028
|
| Coupon: | 4½%
|
| Price: | 101
|
| Yield: | 4.341%
|
| Spread: | 387 bps
|
| First call: | March 1, 2023 at 102.25
|
| Price talk: | 100.5 to 101
|
|
|
| Add-on to 4¾% notes
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| Amount: | $125 million
|
| Issue: | Add-on to 4¾% notes due March 1, 2030
|
| Maturity: | March 1, 2030
|
| Coupon: | 4¾%
|
| Price: | 101.75
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| Yield: | 4.52%
|
| Spread: | 391 bps
|
| First call: | March 1, 2025 at 102.375
|
| Price talk: | 101.25 to 101.75
|
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