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|UnitedAuto Increases Credit Agreement to $700 Million|
Penske Corporation Invests $23 Million
DETROIT, MI, December 28, 2000 - UnitedAuto Group, Inc. (NYSE: UAG), a leading publicly-traded automotive retailer, announced today that it finalized its discussions to increase the revolving portion of its Credit Agreement by $130 million. This action represents the third increase in the capacity to the credit facility since the Company's original agreement was announced in October of 1999.
Concurrently, Penske Corporation, the controlling shareholder, made an investment of $23.0 million in UnitedAuto Group in exchange for 2,139,535 newly issued common shares at $10.75 per share. This investment is in addition to the recently announced purchase by Penske Corporation of 3,993,110 of the Company's common shares from the Bank of Nova Scotia. Upon issuance of these new shares, Penske Corporation, along with Penske Capital Partners and its affiliates, will hold approximately 57.6% of the Company's common stock on a fully diluted basis.
Roger S. Penske commented, "We are extremely pleased with the progress we have made to date at UnitedAuto, and we are very optimistic about the future outlook for the Company. We are now firmly positioned to continue the aggressive pace of operational and strategic changes we feel will enhance UnitedAuto's profitability and support our objective of maximizing shareholder value over the longer term."
UnitedAuto, which has pursued a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 126 franchises in 17 states, Puerto Rico and Brazil. UnitedAuto dealerships sell new and used vehicles and market a complete line of after-market automotive products and services.
Statements in this press release may include forward-looking statements. These forward-looking statements should be evaluated together with additional information about UnitedAuto's business, markets, conditions and other uncertainties which are contained in UnitedAuto's filings with the Securities and Exchange Commission and which are incorporated into this press release by reference.