New Issue: United Auto $325 million 10-year notes yield 7¾%

By Paul A. Harris

St. Louis, Nov. 30 - United Auto Group priced a $325 million issue of 10-year senior subordinated notes (B3/B) at par to yield 7¾% in a quick-to-market Thursday transaction, according to an informed source.

The yield came at the tight end of the 7¾% to 8% price talk.

JP Morgan ran the books for the notes, which were issued via Rule 144A with registration rights. Wachovia Securities, Banc of America Securities LLC and Merrill Lynch were co-managers.

Proceeds will be used to repay the Bloomfield Hills, Mich.-based automotive retailer's floor plan and existing credit facility; the company plans to call its 9 5/8% notes due 2012 using floor plan debt.

Issuer:	United Auto Group
Amount:	$325 million
Maturity:	Dec. 15, 2016
Security description:	Senior subordinated notes
Bookrunner:	JP Morgan
Co-managers:	Wachovia Securities, Banc of America Securities LLC, Merrill Lynch & Co.
Coupon:	7¾%
Price:	Par
Yield:	7¾%
Spread:	329 bps
Call features:	Callable on Dec. 15, 2011 at 103.875, 102.583, 101.292, par on and after Dec. 15, 2014
Equity clawback:	Until Dec. 15, 2009 for 35% at 107.75
Trade date:	Nov. 30
Settlement date:	Dec. 5
Ratings:	Moody's: B3
	Standard & Poor's: B
Distribution:	Rule 144A with registration rights
Price talk:	7¾% to 8%

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