By Paul A. Harris
St. Louis, March 12 - Asbury Automotive Group, Inc. priced a $150 million issue of 10-year senior subordinated notes (B3/B) at par to yield 7 5/8% on Monday, according to an informed source.
The yield was printed at the tight end of the 7¾% area price talk.
Goldman Sachs & Co. ran the books for the Rule 144A with registration rights/Regulation S issue.
The Stamford, Conn., automobile retailer brought a concurrent $100 million offering of senior subordinated convertible notes due 2012.
Proceeds, together with available cash, will be used to repurchase its outstanding $250 million of 9% senior subordinated notes due 2012 and for general corporate purposes.
In addition, concurrently with the offerings Asbury expects to use available cash to repurchase up to 1.3 million shares of its common stock in private transactions.
| Issuer: | Asbury Automotive Group, Inc.
|
| Amount: | $150 million
|
| Maturity: | March 15, 2017
|
| Security description: | Senior subordinated notes
|
| Bookrunner: | Goldman Sachs & Co.
|
| Coupon: | 7 5/8%
|
| Price: | Par
|
| Yield: | 7 5/8%
|
| Spread: | 308 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until March 17, 2012, then at 103.813, 102.542, 101.271, par on and after March 15, 2015
|
| Equity clawback: | Until March 15, 2010 for 35% at 107.625
|
| Trade date: | March 12
|
| Settlement date: | March 26
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 7¾% area
|
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