Pendragon plans refinancing action

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22 April 2013

The UK's largest franchised dealer group is planning action to refinance its debts.

Pendragon, whose trading brands include Stratstone, Evans Halshaw, Chatfields and Quicks, is commencing a debt investor roadshow in respect of a possible bond issue, it told the London Stock Exchange.

As at the end of 2012 Pendragon's net debt stood at £216.4 million, £30m less than the previous year.

Its statement said that if the bond issue proceeds, it, together with a new and associated bank facility which would be completed contemporaneously with the bond issue, will be used to refinance existing debt and for general corporate purposes.

Further details will be announced in due course.

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RAH - 22/04/2013 15:55

Irresponsible, leaving the company exposed like this. The motor trade is not a commodity based market. I shouldn’t think any sensible investor will get involved with a company run by inexperienced management.
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Fredo - 22/04/2013 16:29

Who on earth would want to invest in this company? No dividend, tiny profit and massive debt. Still, their cars are the cheapest on the internet - hmm, is that why they have tiny margins?
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Scott - 22/04/2013 19:04

Its no surprise really, however im not sure they will have much to tempt investors, they would be better selling off some poor performing retailers to some entreprenurial owner drivers out there and concentrating on making themselves a viable business, is it more important to be the biggest dealer group in the uk i wonder? pride before a fall.
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CHILLI PEPPER - 23/04/2013 20:34

I agree with Scott about selling off their under performing dealers to local heros but surely that would impact on an already poor ROS!!!! Tough call?!
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