Penske to repay outstanding bank debt via new note offering

By Sarah Lizee

Olympia, Wash., Aug. 1 – Penske Automotive Group, Inc. plans to repay amounts outstanding under its U.S. credit agreement from an offering of new senior subordinated notes due 2020, according to a 424B5 filing with the Securities and Exchange Commission.

The net proceeds of the offering will be approximately $296.3 million.

Penske’s credit agreement bears a current interest rate of Libor plus 200 basis points and is subject to an incremental 150 bps for uncollateralized borrowings in excess of a defined borrowing base.

The company also plans to use the note proceeds for general working capital purposes.

The transportation services company is based in Bloomfield Hills, Mich.

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