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|UnitedAuto Announces $1.0 Billion Financing Arrangement With Chrysler Financial Company|
|DETROIT, MI, AUGUST 3, 1999 - UnitedAuto Group, Inc. (NYSE: UAG), the nation's second largest publicly traded automotive retailer, today announced that it had arranged $1.0 billion of financing with Chrysler Financial Company, L.L.C., a wholly owned subsidiary of DaimlerChrysler.
The arrangement provides for a six-year, $250 million Credit Facility, which will be used for acquisitions and working capital, and a six-year, $750 million Floorplan Facility to be used for new and used vehicle inventory financing.
The Credit Facility portion of the arrangement carries interest terms that represent an improvement of approximately 1.75% over the Company's existing interest rate and is subject to confirming due diligence and other normal closing conditions. The Floorplan Facility portion of the arrangement carries interest terms that represent an improvement of approximately 0.87% over current interest rates. UnitedAuto retains the flexibility to floorplan certain non-Chrysler vehicles with selected manufacturers and their affiliates.
Roger S. Penske, Chairman, stated, "This arrangement with Chrysler is significant for UnitedAuto in a number of ways. The additional capital funding will facilitate the expansion of our dealership portfolio, provide for substantial savings in interest charges and enhance our vehicle inventory management process." Mr. Penske further stated: "The entire team from Chrysler Financial and UnitedAuto did a terrific job in putting the arrangement together. This arrangement provides tangible evidence that our relationships with our OEM partners are a priority for UnitedAuto and that such relationships create significant value for our shareholders."
UnitedAuto, which has pursued a strategy based on internal growth from its existing dealerships as well as from strategic acquisitions, operates 103 franchises in 16 states and Puerto Rico. UnitedAuto dealerships sell new and used vehicles and market a complete line of aftermarket automotive products and services.
This press release contains forward-looking information, and actual results may materially vary from those expressed or implied herein. Factors, including economic conditions, manufacturer approvals and acquisition risks that could affect these results are described in reports and documents filed by the Company with the Securities and Exchange Commission.