FORT LAUDERDALE, Fla., April 5 /PRNewswire-FirstCall/ -- AutoNation, Inc.
(NYSE: AN), America's largest automotive retailer, today set the pricing for
its previously announced cash tender offer and consent solicitation in respect
of its outstanding 9% Senior Notes due 2008 (the "Notes"). The terms of the
tender offer and consent solicitation for the Notes are detailed in
AutoNation's Offer to Purchase and Consent Solicitation Statement dated March
10, 2006 (the "Offer to Purchase").
The total consideration for the Notes was determined as of 2:00 p.m., New
York City time, on April 5, 2006, using the yield of the 4.125% U.S. Treasury
Note due August 15, 2008 (the "Reference Security") plus a fixed spread of 50
basis points. The yield on the Reference Security, as calculated by J.P.
Morgan Securities Inc. and Wachovia Securities, was 4.72%. Accordingly, the
total consideration, excluding accrued and unpaid interest, for each $1,000
principal amount of Notes validly tendered and not withdrawn at or prior to
5:00 p.m., New York City time, on March 24, 2006 (the "Consent Deadline") is
$1,080.89, which includes a consent payment of $30.00. The tender offer
consideration, excluding accrued and unpaid interest, for each $1,000
principal amount of Notes validly tendered after the Consent Deadline but at
or before the Offer Expiration Date (as defined below) is $1,050.89, which
equals the total consideration less the consent payment.
AutoNation's offer to purchase the Notes is subject to the satisfaction or
waiver of various conditions as described in the Offer to Purchase, including
a financing condition. Notes may be tendered pursuant to the tender offer
until 10:00 a.m., New York City time, on April 12, 2006 (the "Offer Expiration
Date"), or such later date and time to which the Offer Expiration Date is
extended by AutoNation.
The dealer managers for the tender offer and consent solicitation are J.P.
Morgan Securities Inc. ((212) 270-7407, call collect) and Wachovia Securities
((704) 715-8341, call collect). Requests for documents may be directed to
Innisfree M&A Incorporated, the Information Agent, toll-free at (877) 825-8631
(banks and brokers may call collect at (212) 750-5833).
About AutoNation, Inc.
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 345 new vehicle franchises in 17 states.
This press release is for informational purposes only and does not
constitute an offer to buy or the solicitation of an offer to sell
AutoNation's 9% senior notes due 2008. The offer and the consent solicitation
are being made only pursuant to the Offer to Purchase, letter of transmittal
and consent and related materials that AutoNation previously distributed to
noteholders. Noteholders and investors should read carefully the Offer to
Purchase, letter of transmittal and consent and related materials because they
contain important information, including the various terms of, and conditions
to, the offer and the consent solicitation.
Certain statements and information included in this release constitute
"forward-looking statements" within the meaning 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 AutoNation 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
AutoNation's SEC filings. AutoNation undertakes no duty to update its forward-
looking statements.
Notwithstanding any statement in this press release to the contrary, the safe
harbor protections of the Private Securities Litigation Reform Act of 1995 do
not apply to statements made in connection with a tender offer.
SOURCE AutoNation, Inc.
-0- 04/05/2006
/CONTACT: Marc Cannon, AutoNation, +1-954-769-3146, or
cannonm@autonation.com/
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/Web site: http://corp.autonation.com /
(AN)
CO: AutoNation, Inc.
ST: Florida
IN: AUT FIN
SU: OFR
MD
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5035 04/05/2006 15:38 EDT http://www.prnewswire.com