AutoNation Announces Pricing of $700 Million Aggregate Principal Amount of Senior Notes

Rhea-AI Summary

AutoNation, Inc. (NYSE: AN) has priced a $700 million aggregate principal amount of senior unsecured notes due 2032 at a rate of 3.850%. The offering, expected to close on February 28, 2022, is aimed at supporting general corporate purposes, including debt reduction and share repurchases. The notes will be issued at 99.835% of the principal, yielding 3.870% to maturity. Joint book-running managers include BofA Securities and J.P. Morgan. The move reflects AutoNation's strategy to enhance financial flexibility and support growth initiatives.

Positive

• Pricing of $700 million senior unsecured notes indicates strong market demand.
• Proceeds will enhance financial flexibility through debt reduction and potential share repurchases.

Negative

• None.

FORT LAUDERDALE, Fla., Feb. 23, 2022 /PRNewswire/ -- AutoNation, Inc. (NYSE: AN) (the "Company") announced today the pricing of $700 million aggregate principal amount of senior unsecured notes due 2032 at 3.850% (the "notes"). The notes will be issued at 99.835% of the aggregate principal amount, representing a yield to maturity of 3.870%. The offering is expected to close on February 28, 2022, subject to customary closing conditions.

The Company intends to use the net proceeds from the sale of the notes for general corporate purposes, which may include reducing borrowings under its commercial paper program and/or the revolving credit facility under its credit agreement, strategic initiatives, acquisitions, and share repurchases.

BofA Securities, Inc., J.P. Morgan Securities LLC, Truist Securities, Inc., Wells Fargo Securities, LLC, Mizuho Securities USA LLC and U.S. Bancorp Investments, Inc. are acting as joint book-running managers of the debt offering.

The offering is being made solely by means of a prospectus supplement and accompanying prospectus, which has been filed with the Securities and Exchange Commission (the "SEC").  Copies of these documents may be obtained on the SEC's website, www.sec.gov. Alternatively, you may request these documents by contacting BofA Securities, Inc., 200 North College Street, 3rd Floor, Charlotte, NC 28255, Attention: Prospectus Department (tel: 800-294-1322, email: dg.prospectus_requests@bofa.com), J.P. Morgan Securities LLC, 383 Madison Avenue, New York, NY 10179, Attention: Investment Grade Syndicate Desk, 3rd Floor (tel: collect at 212-834-4533), Truist Securities, Inc., 303 Peachtree Street, Atlanta, GA 30308, Attention: Prospectus Department (tel: 800-685-4786, email: TSIdocs@Truist.com), or Wells Fargo Securities, LLC, 608 2nd Avenue South, Minneapolis, MN 55402, Attention: WFS Customer Service (tel: 800-645-3751, email: wfscustomerservice@wellsfargo.com).

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company, and shall not constitute an offer, solicitation or sale in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful.

About AutoNation, Inc.

AutoNation is a provider of personalized transportation services, driven by innovation and transformation. As of December 31, 2021, AutoNation owned and operated over 300 locations from coast to coast. AutoNation has sold over 13 million vehicles, the first automotive retailer to reach this milestone. Since 2013, AutoNation has raised over $30 million to drive out cancer, create awareness, and support critical research through its DRIVE PINK initiative, which was officially branded in 2015.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Words such as "anticipates," "expects," "intends," "goals," "targets," "projects," "plans," "track," "believes," "continues," "may," "will," "could," and variations of such words and similar expressions are intended to identify such forward-looking statements. Our forward-looking statements reflect our current expectations concerning future results and events, and they involve known and unknown risks, uncertainties, and other factors that are difficult to predict and may cause our actual results, performance, or achievements to be materially different from any future results, performance and achievements expressed or implied by these statements. These risks, uncertainties, and other factors include, among others: the current market demand for these types of securities and the securities of the Company; our ability to consummate the offering; our ability to implement successfully our strategic initiatives, partnerships, and investments, including the planned expansion of our AutoNation USA stores; our ability to identify, acquire, and build out suitable locations in a timely manner; our ability to develop successfully our digital and online capabilities; our ability to maintain and enhance our retail brands and reputation and to attract consumers to our own digital channels; our ability to acquire and integrate successfully new franchises; restrictions imposed by vehicle manufacturers and our ability to obtain manufacturer approval for acquisitions; economic conditions, including changes in unemployment, interest, and/or inflation rates, consumer demand, fuel prices, and tariffs; supply chain disruptions and inventory availability; new and used vehicle margins; our ability to attain planned sales volumes within our expected time frames; our ability to successfully implement and maintain expense controls; the success and financial viability and the incentive and marketing programs of vehicle manufacturers and distributors with which we hold franchises; the response by federal, state, and local governments and other parties to, and the economic impacts of, the COVID-19 pandemic; natural disasters and other adverse weather events; the resolution of legal and administrative proceedings; regulatory factors affecting our business, including fuel economy requirements; the announcement of safety recalls; factors affecting our goodwill and other intangible asset impairment testing; and other factors described in our news releases and filings made under the securities laws, including, among others, our Annual Reports on Form 10-K, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. Forward-looking statements contained in this news release speak only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

 

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SOURCE AutoNation, Inc.

FAQ

What are the details of AutoNation's senior unsecured notes offering?

AutoNation has announced a $700 million offering of senior unsecured notes due 2032 at a rate of 3.850%, expected to close on February 28, 2022.

How will AutoNation use the proceeds from the notes?

The proceeds from the notes will be used for general corporate purposes, including reducing borrowings and supporting share repurchase initiatives.

What is the yield to maturity for AutoNation's new notes?

The yield to maturity for AutoNation's new senior unsecured notes is 3.870%.

Who are the joint book-running managers for AutoNation's notes offering?

The joint book-running managers for AutoNation's notes offering include BofA Securities, J.P. Morgan, Truist Securities, Wells Fargo Securities, Mizuho Securities USA, and U.S. Bancorp Investments.