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SEC Filings

10-K
PENSKE AUTOMOTIVE GROUP, INC. filed this Form 10-K on 02/24/2017
Entire Document
 

Long-Term Debt Obligations

 

As of December 31, 2016, we had the following long-term debt obligations outstanding:

 

 

 

 

 

 

 

    

December 31,

 

(In millions)

 

2016

 

U.S. credit agreement — revolving credit line

 

$

240.0

 

U.K. credit agreement — revolving credit line

 

 

48.1

 

U.K. credit agreement — overdraft line of credit

 

 

2.7

 

5.50% senior subordinated notes due 2026

 

 

493.7

 

5.375% senior subordinated notes due 2024

 

 

296.8

 

5.75% senior subordinated notes due 2022

 

 

545.1

 

Australia working capital loan agreement

 

 

24.7

 

Mortgage facilities

 

 

199.9

 

Other

 

 

26.1

 

Total long-term debt

 

$

1,877.1

 

 

As of December 31, 2016, we were in compliance with all covenants under our credit agreements and we believe we will remain in compliance with such covenants for the next twelve months. Refer to the disclosures provided in Part II, Item 8, Note 9 of the Notes to our Consolidated Financial Statements set forth below for a detailed description of our long-term debt obligations.

 

Short-Term Borrowings

 

In 2016, we had four principal sources of short-term borrowings: the revolving portion of the U.S. credit agreement, the revolving portion of the U.K. credit agreement, our Australian working capital loan agreement and the floor plan agreements that we utilize to finance our vehicle inventories. We are also able to access availability under the floor plan agreements to fund our cash needs, including payments made relating to our higher interest rate revolving credit agreements.

 

During 2016, outstanding revolving commitments varied between $0 million and $400.0 million under the U.S. credit agreement, between £0 million and £109.0 million ($0 million and $134.6 million) under the U.K. credit agreement’s revolving credit line (excluding the overdraft facility), and between AU $7.5 million and AU $42.7 million ($5.4 million and $30.8 million) under the Australia working capital loan agreement. The amounts outstanding under our floor plan agreements varied based on the timing of the receipt and expenditure of cash in our operations, driven principally by the levels of our vehicle inventories.

 

PTL Dividends

 

We currently hold a 23.4% ownership interest in Penske Truck Leasing. In July 2016, we increased our ownership interest in PTL from 9.0% to 23.4% as a result of our acquisition of an additional 14.4% ownership interest, as discussed previously. The PTL partnership agreement requires PTL, subject to applicable law and the terms of its credit agreements, to make quarterly distributions to the partners with respect to each fiscal year by no later than 45 days after the end of each of the first three quarters of the year and by April 15 of the following year. PTL’s principal debt agreements allow partner distributions only as long as they are not in default under that agreement and the amount they pay does not exceed 50% of its consolidated net income. During 2016,  2015, and 2014 we received $21.7 million, $13.8 million, and $11.6 million, respectively, of pro rata cash distributions relating to this investment. We currently expect to continue to receive future distributions from PTL quarterly, subject to its financial performance.

 

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