By Paul A. Harris
Portland, Ore., Oct. 15 – Sonic Automotive, Inc. priced an upsized $1.15 billion of senior notes (B1/BB-/BB) in two tranches on Friday, according to market sources.
The deal included an upsized $650 million tranche of eight-year notes that priced at par to yield 4 5/8%, tight to yield talk in the 4¾% area. Initial guidance was in the high-4% to 5% area. The tranche size increased from $500 million.
The deal also included a $500 million tranche of 10-year notes that priced at par to yield 4 7/8%, tight to yield talk in the 5% area.
The overall amount of issuance increased from $1 billion.
BofA Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the joint bookrunners.
The Charlotte, N.C.-based automotive retailer plans to use the proceeds plus additional borrowings to fund its acquisition of RFJ Auto Partners, Inc., and to fully redeem its 6 1/8% senior subordinated notes due 2027, with any remaining proceeds to be used for general corporate purposes, which may include acquisition and development of dealerships.
| Issuer: | Sonic Automotive, Inc.
|
| Amount: | $1.15 billion, increased from $1 billion
|
| Securities: | Senior notes
|
| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Co-managers: | U.S. Bancorp Investments Inc., PNC Capital Markets LLC and Stephens Inc.
|
| Trade date: | Oct. 15
|
| Settlement date: | Oct. 27
|
| Ratings: | Moody's: B1
|
| S&P: BB-
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Eight-year notes
|
| Amount: | $650 million, increased from $500 million
|
| Maturity: | Nov. 15, 2029
|
| Coupon: | 4 5/8%
|
| Price: | Par
|
| Yield: | 4 5/8%
|
| Spread: | 318 bps
|
| Call protection: | Three years
|
| Price talk: | 4¾% area
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 15, 2031
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Spread: | 331 bps
|
| Call protection: | Five years
|
| Price talk: | 5% area
|
|
|
© 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.
