Published on 6/17/2013 in the Prospect News High Yield Daily.
New Issue: Asbury prices upsized $100 million tap of 8 3/8% notes due 2020 at 109.75 to yield 5.628%
By Paul A. Harris
Portland, Ore., June 17 - Asbury Automotive Group, Inc. priced an upsized $100 million add-on to its 8 3/8% senior subordinated notes due Nov. 15, 2020 (B2/B+) at 109.75 to yield 5.628% on Monday, according to a syndicate source.
The reoffer price came rich to price talk set in the 109.5 area.
BofA Merrill Lynch and J.P. Morgan Securities LLC were the joint bookrunners for the quick-to-market add-on that was upsized from $75 million.
The Duluth Ga.-based automotive retailer plans to use the proceeds for general corporate purposes. The company may use the proceeds, together with cash on hand or available borrowings under various credit or mortgage facilities, to redeem its outstanding 7 5/8% notes.
| Issuer: | Asbury Automotive Group, Inc.
|
| Face amount: | $100 million, increased from $75 million
|
| Proceeds: | $109.75 million
|
| Maturity: | Nov. 15, 2020
|
| Security description: | Add-on to the 8 3/8% senior subordinated notes due Nov. 15, 2020
|
| Bookrunners: | BofA Merrill Lynch and J.P. Morgan Securities LLC
|
| Lead manager: | Wells Fargo Securities LLC
|
| Coupon: | 8 3/8%
|
| Price: | 109.75
|
| Yield to worst: | 5.628%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Nov. 15, 2015, then callable at 104.188, 102.792, 101.396, par on and after Nov. 15, 2018
|
| Equity clawback: | 35% at 108.375 until Nov. 15, 2013
|
| Investor put: | 101% upon change of control
|
| Trade date: | June 17
|
| Settlement date: | June 20 with accrued interest
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
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| Distribution: | Rule 144A with registration rights and Regulation S
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| Price talk: | 109.5 area
|
| Marketing: | Quick to market
|
| Original issue: | $200 million priced at par in November 2010
|
| Fungibility: | Upon registration the add-on notes will be fungible with the original notes
|
| Total issue size: | $300 million
|
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