FORT LAUDERDALE, Fla., March 7 /PRNewswire-FirstCall/ -- AutoNation, Inc.
(NYSE: AN), America's largest automotive retailer, announced today that it
intends to offer up to $900 million aggregate principal amount of senior
unsecured notes.
AutoNation intends to use the net proceeds of the offering, together with
bank financing and existing cash, to purchase 50 million shares of its common
stock at a price per share of $23 pursuant to a common stock tender offer and
up to $323.5 million of aggregate principal amount of its 9% senior notes due
2008 pursuant to a debt tender offer and consent solicitation. The bank
financing includes a proposed $300 million term loan (which may be increased
to $400 million) and anticipated borrowings of approximately $150 million
under an amended $600 million revolving credit facility. The Company has
received a commitment from JP Morgan Chase Bank to provide the $300 million
term loan. As announced today, AutoNation intends to commence the tender
offers and consent solicitation by no later than March 10, 2006.
The notes, which are expected to be comprised of a series of floating rate
notes and a series of fixed rate notes, will be offered solely by means of a
confidential offering memorandum in a private placement to qualified
institutional buyers pursuant to Rule 144A under the Securities Act of 1933,
as amended (the "Securities Act"), and to persons outside the United States
under Regulation S of the Securities Act. The notes to be offered have not
been registered under the Securities Act or securities laws of any state and
may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements under the Securities Act
or the laws of any state. This press release shall not constitute an offer to
sell or a solicitation of an offer to buy such notes in any jurisdiction in
which such an offer or sale would be unlawful and is issued pursuant to Rule
135c under the Securities Act.
AutoNation, Inc., headquartered in Fort Lauderdale, Fla., is America's
largest automotive retailer and a component of the Standard and Poor's 500
Index. AutoNation has approximately 27,000 full-time employees and owns and
operates 346 new vehicle franchises in 17 states.
This press release includes statements that constitute "forward-looking
statements," including with regard to the senior notes offering and the tender
offers, such as the completion and timing of such events. These statements are
made pursuant to the safe harbor provisions of the Federal Private Securities
Litigation Reform Act of 1995. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied in
such forward-looking statements. Additional discussion of factors that could
cause actual results to differ materially from management's projections,
estimates and expectations is contained in the Company's SEC filings. The
Company undertakes no duty to update its forward-looking statements, including
its long-term growth targets.
SOURCE AutoNation, Inc.
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Related links:
http://corp.autonation.com
Company News On-Call:
http://www.prnewswire.com/comp/750525.html
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20001017/AUTONATIONLOGO
CONTACT:
Marc Cannon of AutoNation, Inc.,
+1-954-769-3146, or cannonm@autonation.com
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