By Paul A. Harris
Portland, Ore., Aug. 3 – Ken Garff Automotive Group priced an upsized $375 million issue of five-year senior notes (B1/B) at par to yield 7½% on Friday, according to a market source.
The issue size increased from $350 million.
The yield printed in the middle of yield talk in the 7½% area and toward the wide end of early guidance in the 7¼% to 7½% area, a trader said.
J.P. Morgan Securities LLC was the bookrunner.
The Salt Lake City-based auto sales group plans to use the proceeds to fund the acquisition of Leucadia National Corp.’s share of jointly owned Garcadia Auto Services.
Ken Garff Automotive has dealerships in Utah, Texas, Iowa, Nevada, Michigan and California.
Issuer: | KGA Escrow, LLC/Ken Garff Automotive, LLC
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Amount: | $375 million, increased from $350 million
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Maturity: | Aug. 15, 2023
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Securities: | Senior notes
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Bookrunner: | J.P. Morgan Securities LLC
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Coupon: | 7½%
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Price: | Par
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Yield: | 7½%
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Spread: | 468 bps
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Call protection: | Two years
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Trade date: | Aug. 3
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Settlement date: | Aug. 17
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Ratings: | Moody's: B1
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| S&P: B
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Distribution: | Rule 144A for life
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Marketing: | Roadshow
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