Exeter Finance talks $400 million eight-year notes to yield 6¼%-6½%; pricing Thursday

By Paul A. Harris

Portland, Ore., Sept. 30 – Exeter Finance talked its $400 million offering of eight-year senior notes (B2/B-) to yield 6¼% to 6½%, according to market sources.

Official talk comes slightly wide of initial guidance in the low-to-mid 6% area.

The deal is set to price on Thursday.

Citigroup Global Markets Inc. is the left bookrunner. Barclays, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon.

The issuing entity will be Cobra AcquisitionCo LLC.

Proceeds plus the contribution/rollover of $1.405 billion of equity from Warburg Pincus, partners and management, will be used to fund the acquisition of a majority stake in Exeter, an Irving, Tex.-based auto finance company, by Warburg Pincus from Blackstone, and to repay certain debt.

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