By Paul Deckelman
New York, Nov. 1 - Asbury Automotive Group, Inc. drove by the junk bond market on Monday with a $200 million offering of 10-year senior subordinated notes (Caa1/B-), syndicate sources said.
The sources added that the 8 3/8% notes priced at par, at the tight end of price talk of a yield in the 8½% area.
The quickly shopped Rule 144A and Regulation S deal sold with registration rights came to market via joint bookrunners Bank of America Merrill Lynch and J.P. Morgan Securities LLC, along with joint lead-managers Wells Fargo Securities, LLC and Deutsche Bank Securities, Inc.
The bonds have five years of call protection, including a provision for a make-whole call at 50 basis points over comparable Treasuries.
The Duluth Ga.-based automotive retailer plans to use the proceeds from the deal to fund the company's tender for its outstanding 8% subordinated notes due 2014.
| Issuer: | Asbury Automotive Group, Inc.
|
| Amount: | $200 million
|
| Security type: | Senior subordinated notes
|
| Maturity | Nov. 15, 2020
|
| Joint book runners: | Bank of America Merrill Lynch and J.P. Morgan Securities LLC
|
| Joint lead-managers | Wells Fargo Securities, LLC and Deutsche Bank Securities, Inc.
|
| Coupon: | 8 3/8%
|
| Price: | Par
|
| Yield: | 8 3/8%%
|
| Spread: | 575 bps over 2.625% Treasury due Aug. 15, 2020
|
| Call protection: Non-callable until Nov. 15, 2015; make-whole call at Treasuries plus 50 bps
|
| Equity clawback | For 35% of issue at 108.375 until Nov. 15, 2013
|
| Ratings: | Moody's: Caa1
|
| S&P: B-
|
| Trade date: | Nov. 1
|
| Settlement date: | Nov. 16 (T+10)
|
| Price talk: | 8½% area
|
| Distribution; | Rule 144A with registration rights, Regulation S
|
| Marketing: | Quick-to-market
|
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