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EXHIBIT 99.1
Press Release
[UNITEDAUTO LOGO]
UnitedAuto Group, Inc.
13400 Outer Drive West
Detroit, MI 48239
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Contact: Sam DiFeo Jim Davidson Phil Hartz
President Executive VP - Finance Senior VP - Corporate
Communications - Media
201-325-3305 201-325-3303 313-592-5365
[email protected] [email protected] [email protected]
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FOR IMMEDIATE RELEASE
UNITEDAUTO INCREASES CREDIT AGREEMENT TO $700 MILLION; PENSKE
CORPORATION INVESTS $23 MILLION
DETROIT, MI, December 28, 2000 - UnitedAuto Group, Inc. (NYSE: UAG), a leading
publicly-traded automotive retailer, announced today that it finalized its
discussions to increase the revolving portion of its Credit Agreement by $130
million. This action represents the third increase in the capacity to the credit
facility since the Company's original agreement was announced in October of
1999.
Concurrently, Penske Corporation, the controlling shareholder, made an
investment of $23.0 million in UnitedAuto Group in exchange for 2,139,535 newly
issued common shares at $10.75 per share. This investment is in addition to the
recently announced purchase by Penske Corporation of 3,993,110 of the Company's
common shares from the Bank of Nova Scotia. Upon issuance of these new shares,
Penske Corporation, along with Penske Capital Partners and its affiliates, will
hold approximately 57.6% of the Company's common stock on a fully diluted basis.
Roger S. Penske commented, "We are extremely pleased with the progress we have
made to date at UnitedAuto, and we are very optimistic about the future outlook
for the Company. We are now firmly positioned to continue the aggressive pace of
operational and strategic changes we feel will enhance UnitedAuto's
profitability and support our objective of maximizing shareholder value over the
longer term."
UnitedAuto, which has pursued a strategy based on internal growth from its
existing dealerships, as well as from strategic acquisitions, operates 126
franchises in 17 states, Puerto Rico and Brazil. UnitedAuto dealerships sell new
and used vehicles and market a complete line of after-market automotive products
and services.
Statements in this press release may include forward-looking statements. These
forward-looking statements should be evaluated together with additional
information about UnitedAuto's business, markets, conditions and other
uncertainties which are contained in UnitedAuto's filings with the Securities
and Exchange Commission and which are incorporated into this press release by
reference.
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