By Paul A. Harris
Portland, Ore., Feb. 5 – Asbury Automotive Group, Inc. priced $1,125,000,000 of senior notes (B1/BB) in two tranches on Wednesday, according to market sources.
The deal included $525 million of eight-year notes, which priced at par to yield 4½%. The yield printed at the tight end of the 4½% to 4¾% yield talk.
Asbury Automotive also priced $600 million of 10-year notes at par to yield 4¾%. The yield came on top of talk that had the 10-year note coming 25 basis points behind the eight-year notes.
Bookrunners were BofA Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
Books for each tranche contained in excess of $1 billion, a trader said.
The Stamford, Conn., automobile retailer plans to use the proceeds, together with additional borrowings and cash on hand, to fund the acquisition of substantially all of the assets of the businesses of the Park Place Dealership, and to redeem all $600 million Asbury Automotive 6% senior subordinated notes due 2024.
| Issuer: | Asbury Automobile Group, Inc.
|
| Amount: | $1,125,000,000
|
| Securities: | Senior notes
|
| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Co-managers: | Santander Investment Securities Inc., SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc.
|
| Trade date: | Feb. 5
|
| Settlement date: | Feb. 19
|
| Ratings: | Moody's: B1
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
|
|
| Eight-year notes
|
| Amount: | $525 million
|
| Term: | Eight years
|
| Coupon: | 4½%
|
| Price: | Par
|
| Yield: | 4½%
|
| Spread: | 292 bps
|
| Call protection: | Three years
|
| Price talk: | 4½% to 4¾%
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | March 1, 2030
|
| Coupon: | 4¾%
|
| Price: | Par
|
| Yield: | 4¾%
|
| Spread: | 311 bps
|
| Price talk: | 25 bps behind eight-year notes
|
© 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.
