By Paul A. Harris
Portland, Ore., July 19 – Morgan Automotive priced a $500 million issue of LCM Investments Holdings II, LLC eight-year senior notes (B2/B+) at par to yield 8¼% in a Wednesday drive-by, according to market sources.
The yield printed 12.5 basis points inside of the 8 3/8% to 8 5/8% yield talks. Initial guidance was in the high-8% area.
The issue came to market on the back of reverse inquiry amounting to the full deal size.
BofA Securities Inc. was the sole bookrunner.
The automotive retailer plans to use the proceeds to pay off its revolving credit facilities, with any remaining proceeds to be used for general corporate purposes.
| Issuer: | LCM Investments Holdings II, LLC
|
| Amount: | $500 million
|
| Issue: | Senior notes
|
| Maturity: | Aug. 1, 2031
|
| Sole bookrunner: | BofA Securities Inc.
|
| Coupon: | 8¼%
|
| Price: | Par
|
| Yield: | 8¼%
|
| Spread: | 447 bps
|
| Call protection: | Three years
|
| Trade date: | July 19
|
| Settlement date: | July 26
|
| Ratings: | Moody’s: B2
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8 3/8% to 8 5/8%
|
| Marketing: | Drive-by
|
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