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AutoNation accepts 95.6% of 9% senior notes in tender
By Jennifer Chiou
New York, April 12 - AutoNation Inc. announced it accepted tenders from holders of $309.4 million or 95.6% of its $323.5 million of 9% senior notes due 2008.
The tender offer ended at 10 a.m. ET on April 12.
For each $1,000 principal amount of notes, the company said it will pay $1,080.32, which was calculated based on a fixed spread of 50 basis points over the bid-side yield on the 4 1/8% U.S. Treasury note due Aug. 15, 2008.
The total consideration includes a consent payment equal to $30.00 per $1,000 principal amount of notes tendered by the consent deadline of 5 p.m. ET on March 24.
Pricing was determined at 2 p.m. ET on April 5 and the reference yield was 4.72%.
Noteholders who tendered will also receive interest accrued up to but excluding the payment date.
On March 27, the company said it received the required consents for proposed amendments to the note indenture that would eliminate most of the restrictive covenants and events of default.
As of the consent deadline, the company said it received tenders from holders of more than 95% of the securities.
The company previously said it intends to execute a supplemental indenture.
Completion of the tender offer and consent solicitation was subject to the receipt of tenders and consents from at least a majority of noteholders and the receipt of financing. The company said financing includes the $300 million sale of 7% senior notes due 2014, $300 million of unsecured floating-rate senior notes due 2013, the amendment of its existing revolving credit agreement and a $600 million term loan due 2010.
Innisfree M&A Inc. (banks and brokers call collect at 212 750-5833, otherwise 877 825-8631) is the information agent, Wells Fargo Bank NA is the depositary and J.P. Morgan Securities Inc. (212 270-7407, call collect) and Wachovia Securities (704 715-8341, call collect) are the dealer managers.
AutoNation is an automotive retailer based in Fort Lauderdale, Fla. The company began the offer on March 10.
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