BLOOMFIELD HILLS, Mich. -

Penske Automotive Group made a statement Thursday to holders of the $150,602,000 outstanding principal amount of its 3.5 percent senior subordinated convertible notes due in 2026.

The notification indicated that pursuant to the terms of the notes, Penske said these holders have a put option to require the company to purchase all or a portion of their notes at a price equal to $1,000 per $1,000 principal amount of the notes. Penske indicated the put option includes the purchase price plus any accrued and unpaid interest up to but not including April 1.

Penske insisted it will pay for any notes validly tendered for payment with cash on April 1.

As required by Securities and Exchange Commission rules, company executives explained they will file a tender offer statement on Schedule TO. In addition, they pointed out the notice to holders specifying the terms, conditions and procedures for exercising the put option will be available through the depository trust company and the paying agent — The Bank of New York Mellon Trust Co., N.A.

Furthermore, Penske mentioned a copy of the notice will be attached as an exhibit to Schedule TO. 

“None of the company, its board of directors, or its employees has made or is making any representation or recommendation to any holder as to whether to exercise or refrain from exercising the put option,” Penske emphasized.

The company said note-holders’ opportunity to exercise the put option started Thursday and runs through 5 p.m. Eastern on March 31. Penske mentioned holders may withdraw any previously delivered purchase notice pursuant to the terms of the put option at any time prior to the deadline.

For more details, the address of The Bank of New York Mellon Trust Company, N.A. is Corporate Trust Operations, 2 N. La Salle Street, Suite 1020, Chicago, Ill. 60602, Attention: Dan Donovan. Inquiries can be made by phone at (312) 827-8547, fax at (312) 827-8542 or by e-mail to dan.donovan@bnymellon.com.

“This announcement is for informational purposes only and is not an offer to purchase, or the solicitation of an offer to purchase the notes,” Penske concluded.