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SEC Filings

10-K
PENSKE AUTOMOTIVE GROUP, INC. filed this Form 10-K on 02/24/2017
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Table of Contents

 

PENSKE AUTOMOTIVE GROUP, INC.

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

 

(In millions, except share and per share amounts)

 

 

The agreements typically grant a security interest in substantially all of the assets of our dealership and distribution subsidiaries and, in the U.S., Australia and New Zealand, are guaranteed or partially guaranteed by us. Interest rates under the arrangements are variable and increase or decrease based on changes in the prime rate, defined London Interbank Offered Rate (“LIBOR”), the Finance House Base Rate, the Euro Interbank Offered Rate, the Canadian Prime Rate, or the Australian or New Zealand Bank Bill Swap Rate (“BBSW”). To date, we have not experienced any material limitation with respect to the amount or availability of financing from any institution providing us vehicle financing. We also receive non-refundable credits from certain of our vehicle manufacturers, which are treated as a reduction of cost of sales as vehicles are sold.

 

The weighted average interest rate on floor plan borrowings was 1.5%, 1.5%, and 1.7% for 2016, 2015, and 2014, respectively, including for 2014 the effect of the interest rate swap discussed in Note 10. We classify floor plan notes payable to a party other than the manufacturer of a particular new vehicle, and all floor plan notes payable relating to pre-owned vehicles, as “Floor plan notes payable — non-trade” on our consolidated balance sheets and classify related cash flows as a financing activity on our consolidated statements of cash flows.

 

9. Long‑Term Debt

 

Long‑term debt consisted of the following:

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

    

2016

    

2015

 

U.S. credit agreement — revolving credit line

 

$

240.0

 

$

160.0

 

U.K. credit agreement — revolving credit line

 

 

48.1

 

 

70.7

 

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

 

 

296.4

 

5.75% senior subordinated notes due 2022

 

 

545.1

 

 

544.3

 

Australia working capital loan agreement

 

 

24.7

 

 

5.5

 

Mortgage facilities

 

 

199.9

 

 

165.8

 

Other

 

 

26.1

 

 

32.3

 

Total long-term debt

 

$

1,877.1

 

$

1,275.0

 

Less: current portion

 

 

(48.3)

 

 

(28.0)

 

Net long-term debt

 

$

1,828.8

 

$

1,247.0

 

 

 

Scheduled maturities of long‑term debt for each of the next five years and thereafter are as follows:

 

 

 

 

 

 

2017

    

$

48.3

 

2018

 

 

8.5

 

2019

 

 

312.9

 

2020

 

 

12.9

 

2021

 

 

24.4

 

2022 and thereafter

 

 

1,470.1

 

Total long-term debt reported

 

$

1,877.1

 

 

 

U.S. Credit Agreement

 

Our U.S. credit agreement (the “U.S. credit agreement”) with Mercedes-Benz Financial Services USA LLC and Toyota Motor Credit Corporation provides for up to $700.0 million in revolving loans for working capital, acquisitions,

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