Asbury prices $100 million 5.5-year convertibles to yield 3%, up 22.5%

Boston, March 12 - Asbury Automotive Group Inc. priced $100 million of 5.5-year convertible senior subordinated notes on Monday after the market closed to yield 3% with a 22.5% initial conversion premium.

The offering came within talk that put the coupon at 3% to 3.5% and the initial conversion premium of 20% to 25%.

The conversion price is $33.99 and the conversion ratio 29.4172.

The notes were offered at par.

There is an over-allotment option for a further $15 million.

Goldman Sachs is the bookrunner of the Rule 144A offering.

There is a concurrent $150 million offering of 10-year senior subordinated notes.

The convertibles are non-callable and may not be put.

There is dividend and takeover protection.

The convertibles have net share settlement.

Asbury, a New York-based automotive retailer, said it will use the proceeds of the convertible and straight bond deals to buy back its outstanding $250 million of 9% senior subordinated notes due 2012. It will also buy back up to 1.3 million shares of its common stock using available cash and fund convertible note hedge and warrant transactions.

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