By Wendy Van Sickle
Columbus, Ohio, July 26 – AutoNation Inc. priced $850 million of senior notes in two tranches due in 2028 and 2031 (Baa3/BBB-/BBB-) on Monday, according to a 424B5 filed with the Securities and Exchange Commission.
The company priced $400 million of 1.95% senior notes due 2028 at 99.805 to yield 1.98%, or a spread of 95 basis points over Treasuries.
The issuer priced $450 million of 2.4% senior notes due 2031 at 99.735 to yield 2.43%, or a spread of 115 bps over Treasuries.
The notes in both tranches initially feature a make-whole call and then a par call.
BofA Securities Inc., J.P. Morgan Securities LLC, Truist Securities Inc., Wells Fargo Securities LLC, Mizuho Securities USA Inc. and U.S. Bancorp Investments Inc. are the bookrunners.
Proceeds will be used for general corporate purposes.
The automotive retailer is based in Fort Lauderdale, Fla.
| Issuer: | AutoNation Inc.
|
| Amount: | $850 million
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, Truist Securities Inc., Wells Fargo Securities LLC, Mizuho Securities USA Inc. and U.S. Bancorp Investments Inc.
|
| Senior co-managers: | Citizens Capital Markets, Inc. and PNC Capital Markets LLC
|
| Co-managers: | Loop Capital Markets LLC, R. Seelaus & Co., LLC and TD Securities (USA) LLC
|
| Trade date: | July 26
|
| Settlement date: | July 29
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| Seven-year notes
|
| Amount: | $400 million
|
| Maturity: | Aug. 1, 2028
|
| Coupon: | 1.95%
|
| Price: | 99.805
|
| Yield: | 1.98%
|
| Spread: | Treasuries plus 95 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps before June 1, 2028; thereafter at par
|
| Change-of-control put: | 101%
|
|
|
| 10-year notes
|
| Amount: | $450 million
|
| Maturity: | Aug. 1, 2031
|
| Coupon: | 2.4%
|
| Price: | 99.735
|
| Yield: | 2.43%
|
| Spread: | Treasuries plus 115 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps before May 1, 2031; thereafter at par
|
| Change-of-control put: | 101%
|
|
|
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