* Rights issue at 54 pct discount to stocks Wednesday close
* To extend maturity of its borrowing facilities to June
* To save 46 mln stg till Dec 2014 through pension deficit
July 14 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
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
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)