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Syndicate of 23 Financial Institutions Close $1.8B Credit Facility for Group 1 Automotive

June 28, 2019, 08:45 AM
Filed Under: Automotive

Group 1 Automotive, Inc. (GPI), an international, Fortune 500 automotive retailer, announced that it has completed a $1.8 billion five-year revolving syndicated credit facility with 23 financial institutions that will expire in June 2024 and can be expanded to $2.1 billion total availability.

The revolving facility will provide $1.44 billion for inventory floorplan financing.  The facility will also provide $360.0 million for working capital, acquisitions and general corporate purposes, of which up to $125.0 million can be borrowed in either Euros or Pounds Sterling.  New Vehicle and Used Vehicle floorplan interest rates are at one-month LIBOR plus 110bps and one-month LIBOR plus 140bps, respectively.

Lenders in the syndicated facility include four manufacturer-affiliated finance companies and 19 commercial banks.  The four manufacturer-affiliated finance companies are: Mercedes-Benz Financial Services USA LLC; Toyota Motor Credit Corporation; BMW Financial Services NA, LLC; and American Honda Finance Corporation.  The 19 commercial banks are: U.S. Bank National Association; Bank of America, N.A.; JPMorgan Chase Bank, N.A.; Wells Fargo Bank, National Association; Comerica Bank; BBVA USA; Branch Banking & Trust; MassMutual Asset Finance LLC; TD Bank, N.A.; Bank of the West; KeyBank National Association; NYCB Specialty Finance Company, LLC.; Capital One NA; PNC Bank, National Association; Barclays Bank PLC; Zions Bancorporation, N.A. (dba Amegy Bank); Ally Bank.; Amarillo National Bank; and Bank of Oklahoma.  The syndication was arranged through U.S. Bank National Association, JPMorgan Chase Bank N.A., BofA Securities, Inc., and Wells Fargo Securities, LLC.

"The extension of our $1.8 billion revolving facility further strengthens Group 1's balance sheet by locking in ample, reasonably priced capital for vehicle financing and acquisition growth for the next five years," said John C. Rickel, Group 1's senior vice president and chief financial officer. "The commitments made by our lenders are a testament to the strong relationships we have established with our financial partners over the years."

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