NEW YORK — Icahn Enterprises L.P. is increasing its previously announced private placement of senior notes by $250 million, to $750 million, due 2027 and priced at 5.25%.
Proceeds of the notes offering — expected to close on Dec. 12 — will be used for general limited partnership purposes, Icahn Enterprises said.
Among Icahn Enterprises' holdings is Icahn Automotive Group L.L.C. — Pep Boys, Auto Plus and the AAMCO and Precision Tune franchise businesses — which accounts for 21% of Icahn Enterprises' sales.
The firm's auto sector reported third quarter pre-tax operating and net losses of $62 million and $48 million, respectively, on 2.2% greater sales of $749 million. The operating and net losses were 158.3% and 269.2% deeper than in 2018.
For the nine-month period, the pre-tax operating loss increased 59.2% to $164 million while the net loss nearly doubled to $128 million. Revenue increased 1.6% to $2.19 billion.
The notes will be issued under an indenture by and among the Issuers, Icahn Enterprises Holdings L.P. as guarantor, and Wilmington Trust, National Association, as trustee, and will be guaranteed by the guarantor.
The notes and related guarantee are being offered in the U.S. to persons "reasonably believed" to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and outside the U.S. to persons other than "U.S. persons" in compliance with Regulation S under the Securities Act, Icahn said.
The notes and related guarantee have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the U.S. absent registration or an applicable exemption from the registration requirements.
Details of the offering and background on Icahn Enterprises can be found in a recent RoadShow presentation.