By Paul A. Harris
Portland, Ore., Oct. 6 – Group 1 Automotive Inc. priced a $200 million add-on to its 4% senior notes due Aug. 15, 2028 (Ba2/BB+) at 100.25 to yield 3.957% in a Wednesday drive-by, according to a syndicate source.
The issue price came at the rich end of price talk in the par area.
BofA Securities Inc. was on the left of a syndicate of deal managers. Wells Fargo Securities LLC, J.P. Morgan Securities LLC and U.S. Bancorp Investments Inc. were also bookrunners.
Proceeds will be used to fund a portion of the acquisition of Prime Automotive Group, or if the acquisition is not completed, for general corporate purposes, which may include debt repayment.
Group 1 is buying Westwood, Mass.-based Prime Automotive Group for $880 million, according to an 8-K filing with the Securities and Exchange Commission.
Group 1 is a Houston-based operator of automotive dealerships and 48 collision centers.
| Issuer: | Group 1 Automotive, Inc.
|
| Amount: | $200 million
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| Maturity: | Aug. 15, 2028
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| Security description: | Add-on to 4% senior notes due Aug. 15, 2028
|
| Bookrunners: | BofA Securities Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC and U.S. Bancorp Investments Inc.
|
| Co-managers: | PNC Capital Markets LLC, Truist Securities Inc. and Comerica Securities Inc.
|
| Coupon: | 4%
|
| Price: | 100.25
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| Yield: | 3.957%
|
| Spread: | 269 bps
|
| First call: | Aug. 15, 2023 at 102
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| Trade date: | Oct. 6
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| Settlement date: | Oct. 21
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| Ratings: | Moody's: Ba2
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| S&P: BB+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | Par area
|
| Marketing: | Drive-by
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| Original issue: | $550 million priced in August 2020
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| Fungibility: | Add-on notes are to become immediately fungible with the original notes
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