In an SEC filing today, the Penske Automotive Group said that a $459.0 million Credit Agreement from Daimler Chrysler Financial Service USA LLC and Toyota Motor Credit Corporation has been extended.
The agreements provide for up to $250 million in revolving loans for working capital, acquisitions, capital expenditures and investments. For other general corporate purposes, a non-amortizing term loan originally funded for $219 million and for an additional $10 million of availability for letters of credit, has been extended through September 30, 2012.
Penske Automotive Group is the second largest publicly traded automotive retailer in the United States as measured by total revenue. It owns and operates 160 franchises in the United States. Penske is also in the process of purchasing the Saturn brand form General Motors Company. Penske purchases motor vehicles from Daimler AG and Toyota Motor Corporation. Their lending affiliates also provide Penske with “floor-plan” financing and consumer financing.
What this means for car buyers is that Penske Group dealerships will be able to offer consumer financing for vehicle sales and leasing without depending on banks, which are still reluctant to extend credit as the Great Recession continues.