By Paul A. Harris
Portland, Ore., Sept. 4 – Group 1 Automotive, Inc. priced a $200 million add-on to its 5% senior notes due June 1, 2022 (existing B1/confirmed BB) at 98.5 to yield 5.237% in a Thursday drive-by deal, according to a market source.
The reoffer price came on top of price talk.
J.P. Morgan Securities LLC, Wells Fargo Securities LLC and BofA Merrill Lynch were the joint bookrunners.
The Houston-based auto dealership and collision services center chain plans to use the proceeds to repay debt under the acquisition line of its revolver and to make a contribution to its floor plan offset account, which is the amount of excess cash that is used to pay down the floor plan line of its revolver but can be immediately redrawn, according to a Thursday press release from the company.
About $175 million of outstanding debt under the acquisition line was used to finance the conversion and redemption of the company’s 2¼% convertible senior notes due 2036.
| Issuer: | Group 1 Automotive, Inc.
|
| Face amount: | $200 million
|
| Proceeds: | $197 million
|
| Maturity: | June 1, 2022
|
| Security description: | Add-on to 5% senior notes due June 1, 2022
|
| Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Merrill Lynch
|
| Co-managers: | BBVA, Comerica, U.S. Bancorp Investments Inc.
|
| Coupon: | 5%
|
| Price: | 98.5
|
| Yield: | 5.237%
|
| Spread: | 300 bps
|
| First call: | June 1, 2017 at 103.75
|
| Trade date: | Sept. 4
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| Settlement date: | Sept. 9 with accrued interest
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| Ratings: | Moody's: existing B1
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| Standard & Poor's: BB
|
| Distribution: | Rule 144A and Regulation S with registration rights
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| Price talk: | 98.5 area
|
| Marketing: | Quick to market
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| Original issue: | $350 million issue priced at par on May 16, 2014
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| Fungibility: | Add-on notes will be immediately fungible with the original notes
|
| Total issue size: | $550 million
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