Asbury Automotive begins tender offer, consent solicitation for 9% notes

By Angela McDaniels

Seattle, Feb. 26 - Asbury Automotive Group, Inc. began a tender offer to purchase any of its $250 million 9% senior subordinated notes due 2012 and a consent solicitation to amend the indenture governing the notes, according to a company news release.

The offer will expire at midnight ET on March 23.

The tender consideration will be determined based on the yield to the first call date - June 15, 2007 - equal to the sum of the bid-side yield of the 3½% U.S. Treasury note due May 31, 2007 plus 50 basis points.

The tender consideration will include a $30 consent payment per $1,000 principal amount of notes for noteholders who tender and deliver consents by 5 p.m. ET on March 7, the consent payment deadline.

The company will also pay accrued interest up to but excluding the payment date.

The tender offer is subject to the valid tender of at least a majority of the outstanding notes, the receipt of sufficient financing and the receipt of the consents needed to amend the indenture.

Goldman, Sachs & Co. (800 828-3182 or 212 357-0775) is the dealer manager and solicitation agent, and Global Bondholder Services Corp. (866 470-4300 and 212 430-3774) is the information agent.

Asbury Automotive is an automobile retailer based in New York.

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