EX-5.1 2 a13-7360_1ex5d1.htm EX-5.1

Exhibit 5.1

 

Penske Automotive

 

 

Shane M. Spradlin

 

Executive Vice President,
General Counsel and Secretary

 

Penske Automotive Group, Inc.
2555 Telegraph Road
Bloomfield Hills, MI 48302

 

March 19, 2013

 

 

Re: Penske Automotive Group, Inc. Registration

 

 

Statement on Form S-4

 

 

Ladies and Gentlemen:

 

I have acted as counsel to Penske Automotive Group, Inc., a Delaware corporation (the “Company”), in connection with the registration statement on Form S-4 (the “Registration Statement”), of (i) the proposed offer by the Company to exchange (the “Exchange Offer”) an aggregate principal amount of up to $550,000,000 of the Company’s outstanding 5.75% Senior Subordinated Notes Due 2022 (the “Outstanding Notes”) for an equal principal amount of the Company’s 5.75% Senior Subordinated Notes Due 2022 (the “Exchange Notes”), which will be registered under the Securities Act of 1933, as amended (the “Act”) and (ii) the guarantees (the “Guarantees”), pursuant to the Indenture referred to below, of the Guarantors listed in the Registration Statement (the “Guarantors”). The Outstanding Notes have been, and the Exchange Notes will be, issued pursuant to an Indenture, dated as of August 28, 2012, as amended (the “Indenture”), among the Company, as Issuer, the Guarantors, and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”).

 

The entities listed on Schedule A to this letter as the Delaware and New York Guarantors are collectively referred to in this letter as the “Delaware and NY Guarantors”.  The Guarantors that are not listed on Schedule A to this letter are collectively referred to in this letter as the “Other Guarantors”.

 

I have examined originals or copies certified or otherwise identified to my satisfaction of such documents, corporate records, certificates of public officials and other instruments as I have deemed necessary or appropriate for the purposes of this opinion, including with respect to the Delaware and NY Guarantors. The Exchange Notes, Guarantees and the Indenture are referred to herein as the “Transaction Documents.” I have also conducted such investigations of fact and law as I have deemed necessary or advisable for purposes of this opinion. In such examination, I have assumed the genuineness of all signatures, the authenticity of all documents submitted to me as originals, and the conformity to authentic original documents of all documents submitted to me as copies. As to any facts material to this opinion that I did not independently establish or verify, I have, with your consent, relied upon the statements, certificates and representations of officers and other representatives of parties to the Transaction Documents. I have also assumed the valid authorization, execution and delivery of each of the Transaction Documents by each party thereto other than the Company and the Guarantors, and I have assumed that each such other party (in the case of parties which are not natural persons) has been duly organized and is validly existing and in good standing under its jurisdiction of organization, and that each of the Transaction Documents constitutes the valid and binding obligation of all such other parties, enforceable against them in accordance with its terms.

 

I am a member of the Bar of the State of New York and the Bar of the State of Michigan, and I have not considered, and I express no opinion as to, the laws of any jurisdiction other than the laws of the State of New York, the State of Michigan, the General Corporation Law of the State of Delaware, the Limited Liability Company Act of the State of Delaware and the federal laws of the United States of America, in each case as in effect on the date hereof (the “Relevant Laws”).  Insofar as the opinions in this letter relate to or are dependent upon matters governed by the laws of each of the jurisdictions where the Other Guarantors are organized or

 

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incorporated, I have relied upon the opinion of Dykema Gossett PLLC, dated the date hereof, which is being filed as an exhibit to the Registration Statement.

 

Based upon the foregoing, and subject to the qualifications set forth in this letter, it is my opinion that when (a) the Registration Statement has become effective under the Act, (b) the Outstanding Notes have been exchanged in the manner described in the prospectus forming a part of the Registration Statement, (c) the Exchange Notes have been duly executed, authenticated, issued and delivered by the Company in accordance with the terms of the Indenture, against receipt of the Outstanding Notes surrendered in exchange therefor, (d) the Indenture has been duly qualified under the Trust Indenture Act of 1939, as amended, and (e) applicable provisions of “blue sky” laws have been complied with,

 

(a)               the Exchange Notes will constitute valid and legally binding obligations of the Company, entitled to the benefits of the Indenture and enforceable in accordance with their terms, except as may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws affecting creditors’ rights generally and by general equitable principles (whether considered in a proceeding in equity or at law); and

 

(b)               the Guarantees proposed to be issued pursuant to the Exchange Offer will constitute valid and legally binding obligations of each Guarantor, entitled to the benefits of the Indenture and enforceable in accordance with their terms, except as may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws affecting creditors’ rights generally and by general equitable principles (whether considered in a proceeding in equity or at law).

The opinions expressed herein are subject to the following qualifications and comments:

 

(a)               Any provisions of the Exchange Notes that permit any party thereto to take action or make determinations, or to benefit from indemnities and similar undertakings of any party to the Exchange Notes, may be subject to a requirement that such action be taken or such determinations be made, and any action or inaction by such party that may give rise to a request for payment under such an undertaking be taken or not taken, on a reasonable basis and in good faith.

 

(b)               I express no opinion as to whether a federal or state court outside New York would give effect to (i) any choice of law provided for in the Exchange Notes, or (ii) any waiver of jury trial found in the Exchange Notes.

 

I hereby consent to the filing of a copy of this opinion as an exhibit to the Registration Statement and to the use of my name under the caption “Legal Matters” in the prospectus forming a part of the Registration Statement.  In giving this consent, I do not thereby admit that I am within the category of persons whose consent is required under Section 7 of the Act and the rules and regulations thereunder.

 

 

Very truly yours,

 

 

 

/s/ Shane M. Spradlin

 

Shane M. Spradlin

 

Executive Vice President,

 

General Counsel and Secretary

 

Attachment

 

cc:           David K. Jones, Penske Automotive Group, Inc. Chief Financial Officer

 

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SCHEDULE A

 

Delaware and New York Guarantors

 

Guarantor

 

State of Incorporation or
Organization

ATLANTIC AUTO FUNDING CORPORATION

 

Delaware

ATLANTIC AUTO SECOND FUNDING CORPORATION

 

Delaware

ATLANTIC AUTO THIRD FUNDING CORPORATION

 

Delaware

AUTOMOTIVE MEDIA HOLDINGS, LLC

 

Delaware

BRETT MORGAN CHEVROLET-GEO, INC.

 

Delaware

CJNS, LLC

 

Delaware

CLASSIC ENTERPRISES, LLC

 

Delaware

CLASSIC MOTOR SALES, LLC

 

Delaware

CLASSIC NISSAN OF TURNERSVILLE, LLC

 

Delaware

COVINGTON PIKE DODGE, INC.

 

Delaware

CYCLE HOLDINGS, LLC

 

Delaware

DEALER ACCESSORIES, LLC

 

Delaware

DIFEO PARTNERSHIP, LLC

 

Delaware

DAN YOUNG MOTORS, LLC

 

Delaware

D. YOUNG CHEVROLET, LLC

 

Delaware

FRN OF TULSA, LLC

 

Delaware

GOODSON NORTH, LLC

 

Delaware

GOODSON PONTIAC-GMC, LLC

 

Delaware

GOODSON SPRING BRANCH, LLC

 

Delaware

HBL, LLC

 

Delaware

HT AUTOMOTIVE, LLC

 

Delaware

JS IMPORTS

 

Delaware

KMPB, LLC

 

Delaware

LANDERS AUTO SALES, LLC

 

Delaware

LATE ACQUISITION I, LLC

 

Delaware

LATE ACQUISITION II, LLC

 

Delaware

MOTORCARS ACQUISITION II, LLC

 

Delaware

MOTORCARS ACQUISITION III, LLC

 

Delaware

MOTORCARS ACQUISITION IV, LLC

 

Delaware

MOTORCARS ACQUISITION V, LLC

 

Delaware

MOTORCARS ACQUISITION VI, LLC

 

Delaware

MOTORCARS ACQUISITION, LLC

 

Delaware

NATIONAL CITY FORD, INC.

 

Delaware

PAG ACQUISITION 27, LLC

 

Delaware

PAG ACQUISITION 28, LLC

 

Delaware

PAG ACQUISITION 36, LLC

 

Delaware

PAG ACQUISITION 40, LLC

 

Delaware

PAG ACQUISITION 41, LLC

 

Delaware

PAG AZ PROPERTIES, LLC

 

Delaware

PAG ARKANSAS F1, LLC

 

Delaware

 

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Guarantor

 

State of Incorporation or
Organization

PAG ARKANSAS F2, LLC

 

Delaware

PAG ARKANSAS MIT, LLC

 

Delaware

PAG ATLANTA MANAGEMENT, INC.

 

Delaware

PAG AUSTIN H1, LLC

 

Delaware

PAG AUSTIN S1, LLC

 

Delaware

PAG AVONDALE H1, LLC

 

Delaware

PAG BEDFORD A1, LLC

 

Delaware

PAG BEDFORD P1, LLC

 

Delaware

PAG BEDFORD PROPERTIES, LLC

 

Delaware

PAG CHANTILLY M1, LLC

 

Delaware

PAG CLOVIS T1, INC.

 

Delaware

PAG DISTRIBUTOR S1, LLC

 

Delaware

PAG EAST, LLC

 

Delaware

PAG EDISON B1, LLC

 

Delaware

PAG GOODYEAR F1, LLC

 

Delaware

PAG GREENWICH M1, LLC

 

Delaware

PAG INVESTMENTS, LLC

 

Delaware

PAG MADISON L1, LLC

 

Delaware

PAG MADISON T1, LLC

 

Delaware

PAG MARIN M1, INC.

 

Delaware

PAG MICHIGAN HOLDINGS, LLC

 

Delaware

PAG MICHIGAN S1, LLC

 

Delaware

PAG NORTHERN CALIFORNIA MANAGEMENT, INC.

 

Delaware

PAG NORTH SCOTTSDALE BE, LLC

 

Delaware

PAG ONTARIO B1, INC.

 

Delaware

PAG ORANGE COUNTY MANAGEMENT COMPANY, INC.

 

Delaware

PAG ORANGE COUNTY RR1, INC.

 

Delaware

PAG ORLANDO GENERAL, INC.

 

Delaware

PAG ORLANDO LIMITED, INC.

 

Delaware

PAG SAN FRANCISCO N1, INC.

 

Delaware

PAG SAN JOSE S1, INC.

 

Delaware

PAG SANTA ANA AVW, INC.

 

Delaware

PAG SANTA ANA B1, INC.

 

Delaware

PAG SURPRISE T1, LLC

 

Delaware

PAG TEMPE M1, LLC

 

Delaware

PAG TEXAS MANAGEMENT COMPANY, LLC

 

Delaware

PAG TURNERSVILLE AU, LLC

 

Delaware

PAG WEST, LLC

 

Delaware

PAG WEST ACQUISITION 7, INC.

 

Delaware

PAG WEST ACQUISITION 8, INC.

 

Delaware

PAG WEST ACQUISITION 9, INC.

 

Delaware

PAG WEST BAY MIT, LLC

 

Delaware

PALM AUTO PLAZA, LLC

 

Delaware

PENSKE CAR RENTAL HOLDINGS, LLC

 

Delaware

PENSKE CAR RENTAL INDIANA, LLC

 

Delaware

 

4


 

Guarantor

 

State of Incorporation or
Organization

PENSKE CAR RENTAL MEMPHIS, LLC

 

Delaware

PENSKE DIRECT, LLC

 

Delaware

PENSKE WHOLESALE OUTLET, LLC

 

Delaware

PMRC, LLC

 

Delaware

SCOTTSDALE 101 MANAGEMENT, LLC

 

Delaware

SCOTTSDALE PAINT & BODY, LLC

 

Delaware

SK MOTORS, LLC

 

Delaware

SL AUTOMOTIVE, LLC

 

Delaware

SUN MOTORS, LLC

 

Delaware

TURNERSVILLE AUTO OUTLET, LLC

 

Delaware

UAG ARKANSAS FLM, LLC

 

Delaware

UAG ATLANTA H1, LLC

 

Delaware

UAG CAPITOL, INC.

 

Delaware

UAG CAROLINA, INC.

 

Delaware

UAG CENTRAL NJ, LLC

 

Delaware

UAG CHANTILLY AU, LLC

 

Delaware

UAG CITRUS MOTORS, LLC

 

Delaware

UAG CLASSIC, INC.

 

Delaware

UAG CLOVIS, INC.

 

Delaware

UAG CONNECTICUT, LLC

 

Delaware

UAG EAST, LLC

 

Delaware

UAG ESCONDIDO A1, INC.

 

Delaware

UAG ESCONDIDO H1, INC.

 

Delaware

UAG ESCONDIDO M1, INC.

 

Delaware

UAG FAYETTEVILLE I, LLC

 

Delaware

UAG FAYETTEVILLE II, LLC

 

Delaware

UAG FAYETTEVILLE III, LLC

 

Delaware

UAG FINANCE COMPANY, INC.

 

Delaware

UAG GRACELAND II, INC.

 

Delaware

UAG HUDSON CJD, LLC

 

Delaware

UAG INTERNATIONAL HOLDINGS, INC.

 

Delaware

UAG KISSIMMEE MOTORS, INC.

 

Delaware

UAG LANDERS SPRINGDALE, LLC

 

Delaware

UAG LOS GATOS, INC.

 

Delaware

UAG MARIN, INC.

 

Delaware

UAG MEMPHIS II, INC.

 

Delaware

UAG MEMPHIS IV, INC.

 

Delaware

UAG MEMPHIS MANAGEMENT, INC.

 

Delaware

UAG MENTOR ACQUISITION, LLC

 

Delaware

UAG MICHIGAN CADILLAC, LLC

 

Delaware

UAG MICHIGAN H1, LLC

 

Delaware

UAG MICHIGAN H2, LLC

 

Delaware

UAG MICHIGAN PONTIAC-GMC, LLC

 

Delaware

UAG MICHIGAN T1, LLC

 

Delaware

UAG MICHIGAN TMV, LLC

 

Delaware

 

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Guarantor

 

State of Incorporation or
Organization

UAG MINNEAPOLIS B1, LLC

 

Delaware

UAG NANUET II, LLC

 

Delaware

UAG NEVADA LAND, LLC

 

Delaware

UAG NORTHEAST, LLC

 

Delaware

UAG PHOENIX VC, LLC

 

Delaware

UAG REALTY, LLC

 

Delaware

UAG ROYAL PALM, LLC

 

Delaware

UAG ROYAL PALM M1, LLC

 

Delaware

UAG SAN DIEGO A1, INC.

 

Delaware

UAG SAN DIEGO AU, INC.

 

Delaware

UAG SAN DIEGO H1, INC.

 

Delaware

UAG SAN DIEGO JA, INC.

 

Delaware

UAG SAN DIEGO MANAGEMENT, INC.

 

Delaware

UAG SPRING, LLC

 

Delaware

UAG STEVENS CREEK II, INC.

 

Delaware

UAG SUNNYVALE, INC.

 

Delaware

UAG TEXAS II, INC.

 

Delaware

UAG TEXAS, LLC

 

Delaware

UAG TULSA HOLDINGS, LLC

 

Delaware

UAG TURNERSVILLE MOTORS, LLC

 

Delaware

UAG TURNERSVILLE REALTY, LLC

 

Delaware

UAG VK, LLC

 

Delaware

UAG WEST BAY AM, LLC

 

Delaware

UAG WEST BAY FM, LLC

 

Delaware

UAG WEST BAY IA, LLC

 

Delaware

UAG WEST BAY IAU, LLC

 

Delaware

UAG WEST BAY IB, LLC

 

Delaware

UAG WEST BAY II, LLC

 

Delaware

UAG WEST BAY IL, LLC

 

Delaware

UAG WEST BAY IM, LLC

 

Delaware

UAG WEST BAY IN, LLC

 

Delaware

UAG WEST BAY IP, LLC

 

Delaware

UAG WEST BAY IV, LLC

 

Delaware

UAG WEST BAY IW, LLC

 

Delaware

UAG YOUNG II, INC.

 

Delaware

UAG-CARIBBEAN, INC.

 

Delaware

UNITED AUTO LICENSING, LLC

 

Delaware

UNITED AUTOCARE PRODUCTS, LLC

 

Delaware

UNITED FORD BROKEN ARROW, LLC

 

Delaware

UNITED FORD NORTH, LLC

 

Delaware

UNITED RANCH AUTOMOTIVE, LLC

 

Delaware

UNITEDAUTO DODGE OF SHREVEPORT, INC.

 

Delaware

UNITEDAUTO FIFTH FUNDING, INC.

 

Delaware

UNITEDAUTO FINANCE, INC.

 

Delaware

UNITEDAUTO FOURTH FUNDING INC.

 

Delaware

 

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Guarantor

 

State of Incorporation or
Organization

UNITED AUTO SCOTTSDALE PROPERTY HOLDINGS, LLC

 

Delaware

WEST PALM NISSAN, LLC

 

Delaware

WEST PALM S1, LLC

 

Delaware

WESTBURY SUPERSTORE, LTD.

 

New York

YOUNG AUTOMOTIVE HOLDINGS, LLC

 

Delaware

 

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