AM General starts roadshow for $600 million eight-year notes backing buyout by KPS Capital

By Paul A. Harris

Portland, Ore., Sept. 14 – AM General plans to market a $600 million offering of eight-year senior secured notes on a roadshow set to run through Friday, according to market sources.

The Rule 144A for life deal, backing the buyout of the company, has early yield guidance in the high 9% area to 10%.

The notes are expected to price on Friday or Monday.

Deutsche Bank Securities Inc. is the left lead bookrunner. UBS Securities LLC, BNP Paribas Securities Corp. and Nomura Securities International Inc. are the joint bookrunners.

The noes become callable after three years at par plus 50% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

The issuing entity is PM General Purchaser LLC.

Proceeds will be used to support the acquisition of the South Bend, Ind.-based heavy vehicle and contract automotive manufacturer by affiliates of KPS Capital Partners.

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