Asbury Automotive sets roadshow, Tuesday investor call for $1.5 billion two-part notes offer

By Paul A. Harris

Portland, Ore., Nov. 1 – Asbury Automotive Group, Inc. plans to conduct a roadshow for a $1.5 billion two-part offering of senior notes (existing ratings B1/BB) through Thursday, market sources say.

An investor call is scheduled to begin at 11 a.m. ET on Tuesday.

The Rule 144A and Regulation S deal includes eight-year notes that are callable after three years at par plus 50% of the coupon, in the market with initial guidance in the high 4% to 5% area.

It also includes 10.25-year notes that are callable after five years at par plus 50% of the coupon, with initial guidance that has them pricing 37.5 basis points behind the eight-year notes.

Minimum tranche sizes will be $600 million. Final tranche sizes remain to be determined.

BofA Securities, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

US Bancorp, Comerica and Santander Investment Securities Inc. are the co-managers.

Proceeds plus a concurrent common stock offering, additional debt and cash on hand to will be used to fund the acquisition of all equity interests and property of the Larry H. Miller dealerships and Total Care Auto, Powered by Landcar (TCAPL), as well as the real estate purchase and sale agreement between Asbury Automotive Group (ABG) and Miller Family Real Estate, LLC, also the purchase agreement among ABG and certain equity owners of the TCAPL insurance business. The balance of proceeds, if any, is to be used for general corporate purposes including other dealership acquisitions or capital investments.

The prospective issuer is a Duluth, Ga.-based operator of car dealerships in various parts of the United States.

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