Penske to redeem $500 million 5½% subordinated notes due 2026

By Rebecca Melvin

Concord, N.H., May 25 – Penske Automotive Group Inc. plans to redeem $500 million 5½% senior subordinated notes due 2026 using proceeds of a new notes offering, according to a company news release and market sources.

The redemption is slated for June 24. In the interim, the company also intends to repay debt under its U.S. credit agreement, to repay various floor plan debt and for general corporate purposes with proceeds of a new $500 million public offering of eight-year senior subordinated notes expected to price in a Tuesday drive-by deal.

BofA Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners. Citizens Capital Markets Inc., Fifth Third Securities Inc., MUFG, PNC Capital Markets LLC and U.S. Bancorp Investments Inc. are the co-managers.

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

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