Published on 11/7/2017 in the Prospect News Investment Grade Daily.
New Issue: AutoNation prices $750 million of senior notes due 2024 and 2027
By Cristal Cody
Tupelo, Miss., Nov. 7 – AutoNation Inc. sold $750 million of senior notes (Baa3/BBB-/BBB-) in two parts on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The company priced $450 million of 3.5% seven-year notes at 99.876 to yield 3.52%, or a spread of Treasuries plus 135 basis points.
AutoNation sold $300 million of 3.8% 10-year notes at 99.925 to yield 3.809%. The notes priced with a Treasuries plus 150 bps spread.
J.P. Morgan Securities LLC, BofA Merrill Lynch, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Mizuho Securities USA Inc. and MUFG were the bookrunners.
The Fort Lauderdale, Fla., automotive retailer will use the proceeds to reduce debt under its commercial paper program and/or revolving credit facility and for general corporate purposes.
| Issuer: | AutoNation Inc.
|
| Amount: | $750 million
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Mizuho Securities USA Inc. and MUFG
|
| Co-lead managers: | BB&T Capital Markets, Comerica Securities Inc. and U.S. Bancorp Investments, Inc.
|
| Co-managers: | BBVA Securities Inc., Citizens Capital Markets, Inc., Fifth Third Securities, Inc., PNC Capital Markets LLC and TD Securities (USA) LLC
|
| Trade date: | Nov. 7
|
| Settlement date: | Nov. 10
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| Seven-year notes
|
| Amount: | $450 million
|
| Maturity: | Nov. 25, 2024
|
| Coupon: | 3.5%
|
| Price: | 99.876
|
| Yield: | 3.52%
|
| Spread: | Treasuries plus 135 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before Sept. 15, 2024; thereafter at par
|
| Change-of-control put: | 101%
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | Nov. 15, 2027
|
| Coupon: | 3.8%
|
| Price: | 99.925
|
| Yield: | 3.809%
|
| Spread: | Treasuries plus 150 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps before Aug. 15, 2027; thereafter at par
|
| Change-of-control put: | 101%
|
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