By Kenneth Lim
Boston, March 13 - Asbury Automotive Group Inc. priced $100 million of 5.5-year convertible senior subordinated notes within talk on Monday after the market closed to yield 3% with an initial conversion premium of 22.5%.
The notes were offered at par. They were talked at a coupon of 3% to 3.5% and an initial conversion premium of 20% to 25%.
There is an over-allotment option for a further $15 million.
Goldman Sachs was the bookrunner of the Rule 144A offering.
There was a concurrent $150 million offering of 10-year senior subordinated notes, which priced with a coupon of 7.625%.
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.
| Issuer: | Asbury Automotive Group Inc.
|
| Issue: | Convertible senior subordinated notes
|
| Bookrunner: | Goldman Sachs
|
| Amount: | $100 million
|
| Greenshoe: | $15 million
|
| Maturity: | Sept. 15, 2012
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Conversion premium: | 22.5%
|
| Conversion price: | $33.99
|
| Conversion ratio: | 29.4172
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 3%-3.5%, up 20%-25%
|
| Pricing date: | March 12, after the close
|
| Settlement date: | March 16
|
| Distribution: | Rule 144A
|
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