BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--
Penske Automotive Group, Inc. (NYSE: PAG), an international automotive
retailer, today announced the pricing of $550 million aggregate
principal amount of 5.75% Senior Subordinated Notes due 2022 (the “2022
Notes”) at par in a private offering to qualified institutional buyers
in the United States pursuant to Rule 144A and outside the United States
pursuant to Regulation S of the Securities Act of 1933, as amended. This
represents an increase of $150 million over the aggregate principal
amount previously announced.
The offering is expected to close on August 28, 2012, subject to the
satisfaction of customary closing conditions. The Company intends to use
the net proceeds of this offering to purchase any and all of the
Company's $375.0 million in principal amount of 7.75% Senior
Subordinated Notes due 2016 (the “2016 Notes”) tendered in connection
with the Company’s concurrent tender offer for the 2016 Notes and
consent solicitation, and to pay fees and expenses in connection with
the offering. The remaining proceeds from this offering will be used to
repay amounts currently outstanding under the Company’s U.S. credit
agreement and, if additional funds are remaining, its U.S. floor plan
borrowings.
The 2022 Notes offered have not been registered under the Securities Act
of 1933, as amended, or the securities laws of any other jurisdictions,
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 2022 Notes or the 2016 Notes, nor shall it
constitute an offer, solicitation or sale in any jurisdiction in which
such offer, solicitation or sale is unlawful.
Safe Harbor Statement
This press release contains forward-looking statements regarding the
Company’s offering of the 2022 Notes. The forward-looking statements in
this release are based on information available at the time the
statements are made and/or management’s belief as of that time with
respect to future events and involve risks and uncertainties that could
cause actual results and outcomes to be materially different. These
factors include the Company’s ability to consummate its tender offer for
the 2016 Notes, as well as its offering of the 2022 Notes, which is
subject to numerous uncertainties, including but not limited to
successful negotiation of definitive documentation for the financing
arrangement and satisfaction or waiver of all conditions to closing. The
consummation of the transaction may also be impacted by the other risks
and uncertainties detailed in the Company’s filings with the Securities
and Exchange Commission. While the Company may elect to update
forward-looking statements in the future, it specifically disclaims any
obligation to do so, and therefore, you should not rely on these
forward-looking statements as representing our views as of any date
subsequent to today.
About Penske Automotive
Penske
Automotive Group, Inc., headquartered in Bloomfield Hills, Michigan,
operates 340 retail automotive franchises, representing 41 different
brands and 30 collision repair centers. Penske Automotive, 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 17 states and Puerto Rico
and 170 franchises located outside the United States, primarily in the United
Kingdom. Penske Automotive is a member of the Fortune 500 and
Russell 2000 and has approximately 16,000 employees.
Penske Automotive Group, Inc.
David K. Jones, 248-648-2800
Executive
Vice President and Chief Financial Officer
dave.jones@penskeautomotive.com
or
Anthony
R. Pordon, 248-648-2540
Executive Vice President Investor Relations
and Corporate Development
tpordon@penskeautomotive.com
Source: Penske Automotive Group, Inc.