Asbury Automotive repurchases $8.8 million 3% convertibles in 2011

By Toni Weeks

San Diego, July 27 - Asbury Automotive Group, Inc. repurchased $8.8 million of its $29.5 million of 3% senior subordinated convertible notes due Sept. 15, 2012 in July, reducing the outstanding principle amount of notes to $20.7 million.

According to a 10-Q filing with the Securities and Exchange Commission, a net loss of $400,000 from the repurchase will be recognized in the third quarter of 2011.

In February, Asbury's board of directors authorized the company to repurchase, from time to time and until Feb. 28, 2012, up to $30 million of 7.625% notes, 8.375% notes or the 3% convertibles in open market purchases or privately negotiated transactions, replacing a previous authorization to repurchase $25.2 million of 3% convertibles.

The decision to repurchase notes will be dependent upon market conditions, the company's liquidity position and other factors. The $8.8 million repurchased in July reduced the company's authorization to repurchase its subordinated notes to $21.2 million, the filing noted.

Asbury is a Duluth, Ga.-based automotive retailer.

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