New Issue: AutoNation upsizes to $350 million, prices eight-year notes at par to yield 5½%

By Paul A. Harris

Portland, Ore., Jan. 27 - AutoNation, Inc. priced an upsized $350 million issue of eight-year senior notes (Ba2/BB+) at par to yield 5½% on Friday, according to an informed source.

The yield printed at the tight end of the 5½% to 5 5/8% price talk.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities, LLC and SunTrust Robinson Humphrey, Inc. were the joint bookrunners.

The Fort Lauderdale, Fla.-based automotive retailer plans to use the proceeds to pay down bank debt.

Issuer:	AutoNation, Inc.
Amount:	$350 million, increased from $250 million
Maturity:	Feb. 1, 2020
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, SunTrust Robinson Humphrey, Inc.
Co-lead managers:	Mitsubishi UFJ Securities (USA), Inc., Mizuho Securities USA Inc.
Co-Managers:	Comerica Securities, Inc., Fifth Third Securities, Inc., PNC Capital Markets LLC
U.S. Bancorp Investments, Inc.
Coupon:	5½%
Price:	Par
Yield:	5½%
Spread:	403 bps
Call protection:	Non-callable
Make-whole:	Treasuries plus 50 bps
Trade date:	Jan. 27
Settlement date:	Feb. 1
Ratings:	Moody's: Ba2
	Standard & Poor's: BB+
Distribution:	SEC registered
Price talk:	5½% to 5 5/8%

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