BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--Nov. 30, 2006--United
Auto Group, Inc. (NYSE: UAG), an international automotive retailer,
today announced the pricing of $325 million aggregate principal amount
of 7.75% senior subordinated notes due 2016 (the "Notes"). The Notes
were offered to qualified institutional buyers in a private placement
pursuant to Rule 144A of the Securities Act of 1933.
The Company intends to initially repay amounts currently
outstanding under the Company's revolving credit agreement in the
United States and a portion of its existing floorplan borrowings. All
amounts repaid may be available for future borrowings. The Company
presently intends to then re-borrow these amounts in March 2007, and
use the proceeds to call its existing $300 million of 9.625% Notes due
2012, which are callable beginning in March 2007, subject to market
and other conditions.
The Notes offered 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 United States absent registration or an
applicable exemption from registration requirements. This press
release shall not constitute an offer to sell or the solicitation of
an offer to buy any of the Notes, nor shall it constitute an offer,
solicitation or sale in any jurisdiction in which such offer,
solicitation or sale is unlawful.
United Auto Group, Inc., headquartered in Bloomfield Hills,
Michigan, operates 319 retail automotive franchises, representing 41
different brands, and 27 collision repair centers. UnitedAuto, which
sells new and previously owned vehicles, finance and insurance
products and replacement parts, and offers maintenance and repair
services on all brands it represents, has 170 franchises in 20 states
and Puerto Rico and 149 franchises located outside the United States,
primarily in the United Kingdom. UnitedAuto is a member of the Fortune
500 and Russell 1000, and has over 15,000 employees.
Statements in this press release involve forward-looking
statements, including forward-looking statements pertaining to
completion of the proposed transaction on the terms described above
and the use of proceeds of the transaction. The eventual outcome of
these events may vary materially because of risks and uncertainties,
including external factors such as interest rate fluctuations, changes
in consumer spending, economic conditions and other factors over which
management has no control. These forward-looking statements should be
evaluated together with additional information about UnitedAuto's
business, markets, conditions and other uncertainties, which could
affect UnitedAuto's future performance, which is contained in
UnitedAuto's Form 10-K for the year ended December 31, 2005, and its
other filings with the Securities and Exchange Commission, and which
is incorporated into this press release by reference. This press
release speaks only as of its date and UnitedAuto disclaims any duty
to update the information herein.
CONTACT: United Auto Group, Inc.
Bob O'Shaughnessy, Senior VP - Finance
Tony Pordon, Senior Vice President
SOURCE: United Auto Group, Inc.