By Paul A. Harris
Portland, Ore., Nov. 4 – Asbury Automotive Group, Inc. priced a downsized $1.4 billion two-part offering of senior notes (B1/BB/BB) on Thursday, market sources say.
The deal included $800 million of eight-year notes that priced at par to yield 4 5/8%, tight to talk in the 4¾% area.
It also included $600 million of 10.25-year notes that priced at par to yield 5%, tight to talk in the 5 1/8% area.
The overall amount of issuance decreased from $1.5 billion.
BofA Securities, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the joint bookrunners.
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 issuer is a Duluth, Ga.-based operator of car dealerships in various parts of the United States.
| Issuer: | Asbury Automotive Group, Inc.
|
| Amount: | $1.4 billion, decreased from $1.5 billion
|
| Securities: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | US Bancorp, Comerica, Santander Investment Securities Inc.
|
| Trade date: | Nov. 4
|
| Settlement date: | Nov. l9
|
| Ratings: | Moody's: B1
|
| S&P: BB
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Roadshow
|
|
|
| Eight-year notes
|
| Amount: | $800 million
|
| Maturity: | Nov. 15, 2029
|
| Coupon: | 4 5/8%
|
| Price: | Par
|
| Yield: | 4 5/8%
|
| Spread: | 323 basis points
|
| First call: | Nov. 15, 2024 at 102.313
|
| Price talk: | 4¾% area
|
|
|
| 10.25-year notes
|
| Amount: | $600 million
|
| Maturity: | Feb. 15, 2032
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Spread: | 347 bps
|
| First call: | Nov. 15, 2026 at 102.5
|
| Price talk: | 5 1/8% area
|
|
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