Pendragon revs £75m rights issue and debt refi
UK car dealer Pendragon launched a £75.2m rights issue on Thursday in a throwback to the balance sheet-restructurings of 2009. All the proceeds will be applied to reduce the company’s bank loans as a condition of a refinancing that cuts debt by around 20% and interest costs by around 300bp.
Investors initially took fright the shares fell as much as 21% in early trade but once investors had time to consider the rationale of the deal they bounced back to trade down just 2.3% at 21.25p in mid-afternoon.
Royal Bank of Scotland a joint sponsor and financial
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