News Column

Group 1 Automotive, Inc. Announces Redemption of its 2.25% Convertible Senior Notes due 2036

July 26, 2014



By a News Reporter-Staff News Editor at Journal of Transportation -- Group 1 Automotive, Inc. (NYSE: GPI) (the "Company"), an international, Fortune 500 automotive retailer, has given notice to holders of its 2.25% Convertible Senior Notes due 2036 (CUSIP No. 398905AD17) (the "Notes") that it will redeem all of the outstanding Notes on September 4, 2014 (the "Redemption Date") at a redemption price equal to 100% of the aggregate principal amount of the Notes and accrued, but unpaid interest, if any, to, but excluding, the Redemption Date. There are currently $182,800,000 in aggregate principal amount of Notes outstanding.

Holders may convert the Notes at any time prior to 5:00 p.m. on August 29, 2014, at a conversion rate of 16.8716 shares of the Company's common stock per $1,000 principal amount of Notes with a related Observation Period (as defined in the indenture governing the Notes) beginning on and including July 28, 2014 and ending on and including August 29, 2014. Holders who want to convert Notes must satisfy the requirements set forth in Article 12 of the indenture governing the Notes. In the event that holders elect to convert their Notes in connection with the redemption, the Company will satisfy its conversion obligations to holders by paying cash equal to the principal amount of the Notes and delivering shares of common stock in settlement of any and all conversion obligations in excess of the principal amount (provided that the Company will pay cash in lieu of issuing fractional shares).

In connection with the redemption, we intend to enter into agreements with the counterparties to the previously disclosed convertible note hedge and warrant transactions entered into in 2006 concurrently with the execution of the indenture governing the notes and the issuance of the Notes pursuant to which we would terminate or otherwise unwind in part or in full certain of the convertible note hedges and warrants, but there can be no assurance that we will do so.

The Company's notice to holders specifying the terms, conditions and procedures for the redemption and/or conversion is available through The Depository Trust Company and the Trustee, Wells Fargo Bank, National Association.

Keywords for this news article include: Automobiles, Transportation, Group 1 Automotive Inc..

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Source: Journal of Transportation


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