Published on 3/31/2010 in the Prospect News High Yield Daily.
New Issue: AutoNation prices $400 million 6¾% eight-year senior notes to yield 7%
By Paul A. Harris
St. Louis, March 31 - AutoNation, Inc. priced a $400 million issue of 6¾% eight-year senior notes (Ba2/BB+/) at 98.488 to yield 7% on Wednesday, according to an informed source.
The yield printed at the tight end of the 7 1/8% area price talk.
Bank of America Merrill Lynch, J.P. Morgan Securities Inc. and Wells Fargo Securities, LLC were the joint bookrunners for the quick-to-market deal.
Co-lead managers were Comerica Securities, Inc. and SunTrust Robinson Humphrey, Inc. And co-managers were Fifth Third Securities, Inc., Mitsubishi UFJ Securities (USA), Inc., Mizuho Securities USA Inc. and Santander Investment Securities Inc.
Proceeds will be used to fund the tender for the company's existing notes, to repay its term loan and for general corporate purposes.
The auto retailer is based in Fort Lauderdale, Fla.
| Issuer: | AutoNation, Inc.
|
| Face amount: | $400 million
|
| Proceeds: | $393,952,000
|
| Maturity: | April 15, 2018
|
| Securities: | Senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities Inc., Wells Fargo Securities, LLC
|
| Co-lead managers: | Comerica Securities, Inc., SunTrust Robinson Humphrey, Inc.
|
| Co-managers: | Fifth Third Securities, Inc., Mitsubishi UFJ Securities (USA), Inc., Mizuho Securities USA Inc., Santander Investment Securities Inc.
|
| Coupon: | 6¾%
|
| Price: | 98.488
|
| Yield: | 7%
|
| Spread: | 355 bps
|
| Call protection: | Non-callable (Make-whole at Treasuries plus 50 bps)
|
| Equity clawback: | 35% at 106.75 until April 15, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | March 31
|
| Settlement date: | April 14
|
| Ratings: | Moody's: Ba2
|
| Standard & Poor's: BB+
|
| Distribution: | SEC registered
|
| Price talk: | 7 1/8% area
|
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