Penske Automotive Completes Redemption Of 5.75% Senior Subordinated Notes Due 2022

Rhea-AI Summary

Penske Automotive Group (NYSE:PAG) has completed the redemption of $550 million in 5.75% Senior Subordinated Notes due 2022, funded by the issuance of $550 million in 3.5% Senior Subordinated Notes due 2025. This strategic move reduces future interest expenses by approximately $12 million annually and extends the debt maturity by three years. The company continues to operate in the automotive and commercial truck sectors across various countries, maintaining a strong position in the Fortune 500 and Russell indexes.

Positive

• Redemption of $550 million debt improves cash flow by reducing interest expenses by $12 million annually.
• Extension of debt maturity from 2022 to 2025 provides more financial flexibility.

Negative

• None.

BLOOMFIELD HILLS, Mich., Oct. 1, 2020 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE:PAG), a  diversified international transportation services company, today announced that it has completed the redemption of all of its $550 million in aggregate principal amount of 5.75% Senior Subordinated Notes due 2022 ("the 2022 Notes").  The redemption was principally funded with the proceeds from the issuance of $550 million aggregate principal amount of 3.5% Senior Subordinated Notes due 2025 which was completed in August 2020.  

The redemption of the 2022 Notes will reduce the company's future interest expense by approximately $12.0 million annually and extends the maturity of $550 million in senior subordinated debt by three years from 2022 to 2025.

About Penske Automotive
Penske Automotive Group, Inc., (NYSE:PAG) headquartered in Bloomfield Hills, Michigan, is an international transportation services company that operates automotive and commercial truck dealerships principally in the United States, the United Kingdom, Canada, and Western Europe, and distributes commercial vehicles, diesel engines, gas engines, power systems and related parts and services principally in Australia and New Zealand. PAG is a member of the Fortune 500, Russell 1000, and Russell 3000 indexes, and is ranked among the World's Most Admired Companies by Fortune Magazine. For additional information, visit the company's website at www.penskeautomotive.com.

Inquiries should contact:
J.D. Carlson	Anthony R. Pordon
Executive Vice President and	Executive Vice President Investor Relations
Chief Financial Officer	and Corporate Development
Penske Automotive Group, Inc.	Penske Automotive Group, Inc.
248-648-2810	248-648-2540
jcarlson@penskeautomotive.com	tpordon@penskeautomotive.com

 

 

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SOURCE Penske Automotive Group, Inc.

FAQ

What recent financial move did Penske Automotive Group (PAG) announce?

Penske Automotive Group announced the redemption of $550 million in 5.75% Senior Subordinated Notes due 2022.

How does the redemption of the 2022 Notes impact Penske Automotive Group's finances?

The redemption will reduce future interest expenses by approximately $12 million annually.

What is the new maturity date for the issued Senior Subordinated Notes?

The new maturity date for the Senior Subordinated Notes is 2025.

How much did Penske Automotive Group issue in new Senior Subordinated Notes?

Penske Automotive Group issued $550 million in new 3.5% Senior Subordinated Notes.