Penske Automotive Group Announces Pricing of $550 Million Senior Subordinated Notes

Rhea-AI Summary

Penske Automotive Group (NYSE: PAG) announced the pricing of $550 million in fixed rate Senior Subordinated Notes due 2025 at 3.5%. This offering is subject to customary closing conditions and is expected to close on August 20, 2020. The proceeds will be used to redeem the company's existing $550 million 5.75% Senior Subordinated Notes due 2022, scheduled for redemption on October 1, 2020, along with other debts. The offering details and forward-looking statements are available in the prospectus filed with the SEC.

Positive

• Issuance of $550 million in Senior Subordinated Notes at a lower interest rate of 3.5% compared to existing 5.75% notes.
• Intent to use proceeds to reduce debt obligations, improving financial stability.

Negative

• Subject to customary closing conditions, which could delay the transaction.
• Potential risks associated with forward-looking statements regarding the offering.

BLOOMFIELD HILLS, Mich., Aug. 4, 2020 /PRNewswire/ -- Penske Automotive Group, Inc., (NYSE: PAG) a diversified international transportation services company, today announced the pricing of $550 million aggregate principal amount of fixed rate Senior Subordinated Notes due 2025 (the "2025 Notes") at 3.5%.  The sale of the 2025 Notes, which is subject to customary closing conditions, is expected to be completed on August 20, 2020.

The company intends to use the net proceeds of this offering to redeem its $550 million 5.75% Senior Subordinated Notes due 2022 on October 1, 2020.  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 2025 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 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 and Russell 1000 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 are the details of Penske Automotive's recent bond offering (PAG)?

Penske Automotive Group announced a $550 million bond offering of Senior Subordinated Notes due 2025 at 3.5%.

When is the closing date for the Senior Subordinated Notes offering by Penske Automotive (PAG)?

The offering is expected to close on August 20, 2020.

What will Penske Automotive do with the proceeds from the bond offering (PAG)?

The proceeds will be used to redeem existing 5.75% Senior Subordinated Notes due 2022 and for debt repayment.

What is the interest rate for the new Senior Subordinated Notes issued by Penske Automotive (PAG)?

The interest rate for the new Senior Subordinated Notes is 3.5%.