UPDATE 1-Pendragon to raise 75 mln stg in discounted rights issue
* Rights issue at 54 pct discount to stocks Wednesday close
* To extend maturity of its borrowing facilities to June 2014
* To save 46 mln stg till Dec 2014 through pension deficit reduction plan
July 14 (Reuters) - British car dealer Pendragon plans to raise about 75.2 million pounds through a discounted rights issue to reduce its debt and said it would extend the maturity of its borrowing facilities to June 2014.
The 9-for-8 rights issue is at a price of 10 pence per new ordinary share, representing a 54 percent discount to the stock's Wednesday close.
Britain's largest motor retailer has also agreed to extend the maturity profile of its borrowing facilities, conditional on the receipt of the proceeds of the rights issue by the lending group.
The company, which in February said it would not pay full-year dividend as it focuses on reducing debt, now plans to resume dividend payments from financial year 2012.
Separately, the company has agreed on a new pension deficit reduction plan which will eliminate the current pension deficit and unlock cash flow savings of 46 million pounds in the period to December 2014.
As on Dec. 31, 2010, the company's net debt was 325.5 million pounds.
The company, whose Stratstone dealerships sell premium models such as Maserati and Mercedes-Benz, added that trading and outlook for the year is in line with the its expectations.
Pendragon shares, which have gained 6 percent since the beginning of the year, were trading down 21.8 percent at 17 pence at 0709 GMT on the London Stock Exchange. (Reporting by Juhi Arora in Bangalore; Editing by Roshni Menon)
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