Constellation Automotive sets pricing in £1.11 billion equivalent first-, second-lien loans

By Paul A. Harris

Portland, Ore., July 9 – Constellation Automotive Ltd. set pricing on £1.11 billion equivalent of term loans, a market source said on Friday.

A £785 million equivalent seven-year covenant-lite first-lien term loan B (expected ratings B2/B-) features a euro-denominated tranche talked at Euribor plus 400 basis points to 425 bps and an original issue discount of 99.5 and a sterling-denominated tranche talked at SOFR plus 475 bps to 500 bps and a 99 OID. Tranche sizes remain to be determined.

A £325 million eight-year covenant-lite second-lien term loan (expected ratings Caa2/CCC) is talked at SOFR plus 800 bps at 99.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

There are no Euribor or SOFR floors on any of the tranches.

Commitments are due at 7 a.m. ET on July 16, the source added.

Barclays and HSBC are the joint physical bookrunners on the deal. Santander is a joint bookrunner. HSBC is the administrative agent.

Proceeds will be used with a senior secured notes offering to refinance and recapitalize the company.

Constellation Automotive is an England-based digital used vehicle marketplace.

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