The UK's largest franchised dealer group is planning action to refinance its debts.
Pendragon, whose trading brands include Stratstone, Evans Halshaw, Chatfields and Quicks, is commencing a debt investor roadshow in respect of a possible bond issue, it told the London Stock Exchange.
As at the end of 2012 Pendragon's net debt stood at £216.4 million, £30m less than the previous year.
Its statement said that if the bond issue proceeds, it, together with a new and associated bank facility which would be completed contemporaneously with the bond issue, will be used to refinance existing debt and for general corporate purposes.
Further details will be announced in due course.