New Issue: Asbury Automotive upsized $200 million 10-year notes yield 8%

By Paul A. Harris

St. Louis, Dec. 18 - Asbury Automotive Group Inc. priced an upsized $200 million offering of 10-year senior subordinated notes (B3/B) Thursday at par to yield 8%, or 384 basis points over Treasuries, a syndicate source said.

The deal, which matures March 15, 2014, was increased from a $150 million offering that had been talked to yield 7¾% to 8%.

Goldman Sachs & Co. and JP Morgan were joint bookrunners on the Rule 144A/Regulation S issue, which has registration rights. Wachovia Securities was co-manager.

Asbury Automotive plans to use proceeds to repay borrowings under the Stamford, Conn.-based company's credit facility.

Issuer:	Asbury Automotive Group
Amount:	$200 million (increased from $150 million)
Maturity:	March 15, 2014
Security description:	Senior subordinated notes
Bookrunners:	Goldman Sachs & Co., JP Morgan
Co-manager:	Wachovia Securities
Coupon:	8%
Price:	Par
Yield:	8%
Spread:	384 basis points
Call features:	T+50 make-whole call until March 15, 2009 then at 104.0, 102.667, 101.333, par on March 15, 2012 and thereafter
Equity clawback:	Until March 15, 2007 for 35% at 108.0
Settlement date:	Dec. 23
Ratings:	Moody's: B3
	Standard & Poor's: B
Price talk:	7¾%-8%

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