Penske Automotive Group Announces $500 Million Senior Subordinated Notes Offering

Rhea-AI Summary

Penske Automotive Group (NYSE: PAG), a diversified transportation services provider, announced a proposed offering of $500 million in fixed rate Senior Subordinated Notes due 2029. The proceeds will be utilized to redeem existing $500 million 5.5% Senior Subordinated Notes due 2026, repay amounts under the U.S. credit agreement, and for general corporate purposes. The offering is contingent on market conditions and customary closing requirements, with no solicitation of offers in jurisdictions where prohibited.

Positive

• Intended use of proceeds to redeem higher interest debt, potentially reducing overall interest expenses.
• Strengthening financial position through repayment of various debts.

Negative

• Market conditions may impact the success of the notes offering.
• Potential risks associated with forward-looking statements regarding the financing arrangement.

BLOOMFIELD HILLS, Mich., May 25, 2021 /PRNewswire/ -- Penske Automotive Group, Inc., (NYSE:PAG) a diversified international transportation services company, today announced that it intends to offer $500 million aggregate principal amount of fixed rate Senior Subordinated Notes due 2029 (the "2029 Notes"), subject to market and other customary closing conditions, pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission ("SEC").

The company intends to use the net proceeds of this offering to redeem its $500 million 5.5% Senior Subordinated Notes due 2026.  In the interim, we intend to repay amounts outstanding under our U.S. credit agreement, to repay various floor plan debt, and for general corporate purposes. 

This offering is being made solely by means of a prospectus supplement and accompanying prospectus, which has been filed with the SEC.  A copy of the prospectus for the offering may be obtained on the SEC's website, www.sec.gov.  Alternatively, you may request it by contacting BofA Securities, Inc., NC1-004-03-43, 200 North College Street, 3^rd floor, Charlotte NC 28255-0001, Attn: Prospectus Department, or by email at dg.prospectucs_requests@bofa.com, J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, Attn: Prospectus Department, 1155 Long Island Avenue, Edgewood, NY 11717, or telephone: 1-866-803-9204 or Wells Fargo Securities, LLC, 550 S. Tryon Street, 5^th Floor, Charlotte, NC 28202 Attn: Leveraged Syndicate or email IBCMDCMLSHYLeveragedSyndicate@wellsfargo.com or by facsimile at (704) 410-4874 (with such fax to be confirmed by telephone to (704) 410-4885).

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, and shall not constitute an offer, solicitation or sale in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful.

Safe Harbor Statement

This press release contains forward-looking statements regarding the company's proposed offering of the 2029 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, but are 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 SEC.  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., (NYSE: PAG) headquartered in Bloomfield Hills, Michigan, is a diversified 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 and 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 Executive Vice President and Chief Financial Officer 248-648-2810 jcarlson@penskeautomotive.com

Anthony R. Pordon Executive Vice President Investor Relations and Corporate Development 248-648-2540 tpordon@penskeautomotive.com

 

 

 

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SOURCE Penske Automotive Group, Inc.

FAQ

What is Penske Automotive Group's recent announcement about Senior Subordinated Notes offering?

Penske Automotive announced a proposed offering of $500 million in Senior Subordinated Notes due 2029 to refinance existing debt.

What will Penske Automotive do with the proceeds from the $500 million notes offering?

The proceeds will be used to redeem existing $500 million 5.5% Senior Subordinated Notes due 2026 and for general corporate purposes.

When are the new Senior Subordinated Notes due?

The new Senior Subordinated Notes are due in 2029.

What are the risks associated with the offering of the Senior Subordinated Notes?

The offering's success depends on market conditions and other customary closing requirements.

How much is Penske Automotive planning to raise from the notes offering?

Penske Automotive is planning to raise $500 million from the offering.