Published on 2/23/2022 in the Prospect News Investment Grade Daily.
New Issue: AutoNation sells $700 million 3.85% 10-year senior notes at Treasuries plus 190 bps
By Rebecca Melvin and Cristal Cody
Concord, N.H., Feb. 23 – AutoNation Inc. priced $700 million of 3.85% senior notes due March 1, 2032 (Baa3/BBB-/BBB-) at 99.835 to yield 3.87%, or a spread to Treasuries of 190 basis points, according to a 424B5 filed with the Securities and Exchange Commission.
Initial price talk was in the Treasuries plus 210 bps area.
The notes will feature a make-whole call prior to Dec. 1, 2031 at Treasuries plus 30 bps and then they are callable at par. There is a change-of-control put at 101.
BofA Securities, Inc., J.P. Morgan Securities LLC, Truist Securities, Inc., Wells Fargo Securities, LLC, Mizuho Securities USA LLC and U.S. Bancorp Investments, Inc. are the joint bookrunners.
Skadden, Arps, Slate, Meagher & Flom LLP and in-house counsel are advising the company on legal matters. Simpson Thacher & Bartlett LLP is counsel to the underwriters.
Proceeds will be used for general corporate purposes, which may include reducing borrowings under the company’s commercial paper program or revolving credit facility, strategic initiatives, acquisitions and share repurchases.
The automotive retailer is based in Fort Lauderdale, Fla.
| Issuer: | AutoNation Inc.
|
| Amount: | $700 million
|
| Issue: | Senior notes
|
| Maturity: | March 1, 2032
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, Truist Securities, Inc., Wells Fargo Securities, LLC, Mizuho Securities USA LLC and U.S. Bancorp Investments, Inc.
|
| Senior co-managers: | PNC Capital Markets LLC and Citizens Capital Markets, Inc.
|
| Co-managers: | Loop Capital Markets LLC, TD Securities (USA) LLC, Bancroft Capital, LLC, R. Seelaus & Co., LLC, C.L. King & Associates, Inc. and Academy Securities, Inc.
|
| Coupon: | 3.85%
|
| Price: | 99.835
|
| Yield: | 3.87%
|
| Spread: | Treasuries plus 190 bps
|
| Call options: | Make-whole call prior to Dec. 1, 2031 at Treasuries plus 30 bps, then callable at par
|
| Change of control: | Yes, at 101
|
| Trade date: | Feb. 23
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| Settlement date: | Feb. 28
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 210 bps area
|
| Cusip: | 05329RAA1
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