BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--Jan. 26, 2007--United
Auto Group, Inc. (NYSE:UAG), an international automotive retailer,
today provided notice to the Bank of New York Trust Company, N.A., the
trustee of its $300 million 9.625% Senior Subordinated Notes Due 2012
(the "Notes"), of its intention to redeem the Notes on March 15, 2007,
at a price of 104.813% for all notes outstanding.
In December 2006, the Company completed a $375 million, 7.75%
Senior Subordinated Note offering with the intention of refinancing
the Notes. The proceeds from the December transaction were temporarily
used to repay amounts outstanding under the Company's revolving credit
agreement in the U.S. and a portion of its U.S. floor plan borrowings.
UnitedAuto intends to fund the aggregate redemption price of the Notes
(estimated to be $314 million) principally with floor plan borrowings
in the U.S.
Chief Financial Officer Bob O'Shaughnessy commented, "Upon
completing the redemption of the Notes, we will have achieved our goal
of lengthening the weighted average maturity of our outstanding fixed
rate indebtedness, reducing our exposure to interest rate volatility,
and reducing the weighted average interest rate of our fixed rate
indebtedness. The Company's strong cash flow, coupled with the
flexibility and stability afforded by our capital structure, provide
us with the capacity to continue investing in the growth of our
United Auto Group, Inc., headquartered in Bloomfield Hills,
Michigan, operates 312 retail automotive franchises, representing 41
different brands, and 26 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 167 franchises in 19 states
and Puerto Rico and 145 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 may involve forward-looking
statements, including forward-looking statements regarding
UnitedAuto's present intention and ability to redeem its 9.625% notes.
Actual results may vary materially because of risks and uncertainties,
including external factors such as interest rate fluctuations, changes
in consumer spending 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 are 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 are 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
CONTACT: United Auto Group, Inc.
Bob O'Shaughnessy, Chief Financial Officer
Tony Pordon, Senior Vice President
SOURCE: United Auto Group, Inc.