Group 1 Automotive closes $15 million note offering
By APThursday, April 1, 2010
Group 1 Automotive closes $15M note offering
HOUSTON — Auto retailer Group 1 Automotive Inc. said Thursday that its sale of $15 million of convertible senior notes due 2020 has closed.
The notes represent the overallotment option that the buyers of the company’s recent $100 million convertible note offering exercised in full. An overallotment option means the issuer can sell additional notes at the same price to meet demand.
Group 1 said the purchasers’ exercise of the overallotment option led to additional proceeds to of about $14.6 million, bringing the total to about $111.3 million.
The company plans to proceeds to redeem its existing 8.25 percent senior subordinated notes and to pay the cost of convertible hedge transactions.
Shares rose 79 cents, or 2.5 percent, to close at $32.65.
