Penske Automotive Group, Inc. Announces Pricing of $500 Million Aggregate Principal Amount of 3.75% Senior Subordinated Notes Due 2029
May 25, 2021 at 04:33 pm EDT
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Penske Automotive Group, Inc. announced the pricing of $500 million aggregate principal amount of 3.75% Senior Subordinated Notes due 2029. The sale of the 2029 notes, which is subject to customary closing conditions, is expected to be completed on June 15, 2021. The company intends to use the net proceeds of this offering to redeem its $500 million 5.5% Senior Subordinated Notes due 2026 on June 24, 2021. In the interim, the company intend to repay amounts outstanding under its U.S. credit agreement, to repay various floor plan debt, and for general corporate purposes.
Penske Automotive Group, Inc. is a diversified international transportation services company. The Company is also engaged in automotive and commercial truck retailing. The Company operates dealerships in the United States, the United Kingdom, Canada, Germany, Italy, and Japan and retailers of commercial trucks in North America for freightliner. The Company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. The Retail Automotive segment consists of its retail automotive dealership operations. The Retail Commercial Truck segment consists of its retail commercial truck dealership operations in the United States and Canada. The Other segment consists of its commercial vehicle and power system distribution operations. The Non-Automotive Investments segment consists of its equity method investments in non-automotive operations, which includes its investment in Penske Transportation Solutions (PTS) and various other investments.