Investors took only 67% of the shares in Pendragon’s £75.2 million rights issue, Financial Times reports. RBS Hoare Govett, Barclays Capital and Arden Partners will take the remaining 33%. The proceeds will be used to reduce the car dealer’s £300 million debt to about £220 million by December, enabling a dividend to be paid in 2012. Pendragon will also provide pension trustees £36 million of security in 17 of its properties in exchange for eliminating a £40 million pension deficit.
Click here for the story from Financial Times.