AutoNation sets Tuesday launch for $300 million term loan

By Sara Rosenberg

New York, March 9 - AutoNation Inc. has scheduled a bank meeting for Tuesday to launch its proposed $300 million term loan (NA/NA/BB+), according to a market source.

JPMorgan is the lead bank on the deal.

The term loan has a $100 million accordion feature.

Proceeds from the term loan, along with about $150 million of revolver borrowings, a proposed $900 million senior unsecured notes offering and cash on hand, will finance the purchase of 50 million of AutoNation's shares at $23.00 each for a stock tender offer and up to $323.5 million of its 9% senior notes due 2008 for a debt tender offer and consent solicitation.

In connection with this transaction, the company anticipates amending or possibly amending and restating its existing $600 million revolving credit facility to, among other things, allow for the new term loan debt.

AutoNation is a Fort Lauderdale, Fla., automotive retailer.

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