AutoNation tenders, solicits consents for floaters, 7% senior notes

By Jennifer Chiou

New York, March 31 - AutoNation, Inc. announced the start of a cash tender offer for any and all of its $146.1 million of floating-rate senior unsecured notes due April 15, 2013 as well as any and all of its $132.6 million of 7% senior unsecured notes due April 15, 2014.

The company is also asking holders to provide consents to certain proposed amendments to the indentures that would eliminate most of the restrictive covenants and certain events of default and shorten the notice periods required to undertake an optional redemption of either series of notes.

The consent deadline is 5 p.m. ET on April 13.

The offer will end at 11:59 p.m. ET on April 27.

For each $1,000 principal amount, AutoNation said it will pay $1,010 for the floaters and $1,035 for the 7% notes, each including a $30.00 consent payment for those who tender by the early deadline.

The company will also pay accrued interest.

AutoNation is seeking consents from holders of a majority of the notes. The offer also has a financing condition.

The depositary and information agent is Global Bondholder Services Corp. (866 470-3900 or call collect 212 430-3774). The dealer managers are Banc of America Securities LLC (888 292-0070 or call collect 980 388-9217), J.P. Morgan Securities Inc. (866 834-4666 or call collect 212 834-3424) and Wells Fargo Securities, LLC (866 309-6316 or call collect 704 715-8341).

AutoNation is an automotive retailer based in Fort Lauderdale, Fla.

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