By Cristal Cody
Tupelo, Miss., May 19 – AutoNation Inc. priced an upsized $500 million of 4.75% 10-year senior notes (Baa3/BBB-/BBB-) on Tuesday at 99.479 to yield 4.816%, or a spread of Treasuries plus 410 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.
Initial guidance was in the 475 bps to 487.5 bps over Treasuries area.
The offering was upsized from $400 million.
BofA Securities Inc., J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Mizuho Securities USA Inc. and U.S. Bancorp Investments Inc. were the bookrunners.
The Fort Lauderdale, Fla., automotive retailer will use the proceeds to reduce debt under its commercial paper program and/or revolving credit facility, to repay its 3.35% notes due 2021 and for general corporate purposes.
| Issuer: | AutoNation Inc.
|
| Amount: | $500 million
|
| Maturity: | June 1, 2030
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Mizuho Securities USA Inc. and U.S. Bancorp Investments Inc.
|
| Senior co-managers: | Citizens Capital Markets, Inc. and PNC Capital Markets LLC
|
| Co-manager: | TD Securities (USA) LLC
|
| Coupon: | 4.75%
|
| Price: | 99.479
|
| Yield: | 4.816%
|
| Spread: | Treasuries plus 410 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps before March 1, 2030; thereafter at par
|
| Change-of-control put: | 101%
|
| Trade date: | May 19
|
| Settlement date: | May 22
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 475 bps-487.5 bps area
|
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