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Group 1 Automotive Amends, Extends $2.0B Revolving Credit Facility with Lending Syndicate

March 10, 2022, 07:42 AM
Filed Under: Automotive

Group 1 Automotive, an international, Fortune 300 automotive retailer with 201 dealerships located in the U.S. and U.K., completed a $2.0 billion five-year revolving syndicated credit facility with 21 financial institutions that will expire in March 2027 and can be expanded to $2.4 billion total availability.

The revolving facility will provide $1.651 billion for inventory floorplan financing. New Vehicle and Used Vehicle floorplan interest rates are at SOFR (including a 10 bps spread adjustment) plus 110 bps and 140 bps, respectively. The facility will also provide $349.0 million for working capital, acquisitions and general corporate purposes, which can be expanded to a maximum of $500.0 million, or 25 percent of the total credit facility. This working capital line also allows for up to $150.0 million to be borrowed in either Euros or Pounds Sterling.

Lenders in the syndicated facility include six manufacturer-affiliated finance companies and 15 commercial banks.  The six manufacturer-affiliated finance companies are: Mercedes-Benz Financial Services USA LLC; Toyota Motor Credit Corporation; BMW Financial Services NA, LLC; American Honda Finance Corporation; VW Credit, Inc.; and Hyundai Capital America, Inc.  The 15 commercial banks are: U.S. Bank National Association; Bank of America, N.A.; JPMorgan Chase Bank, N.A.; Wells Fargo Bank, National Association; PNC Bank, National Association; Comerica Bank; Truist Bank; TD Bank, N.A.; Capital One, N.A.; Ally Bank; NYCB Specialty Finance Company, LLC; Barclays Bank PLC; Zions Bancorporation, N.A. (dba Amegy Bank); Santander Bank, N.A.; and BOKF, NA (dba Bank of Oklahoma).  The syndication was arranged through U.S. Bank National Association, JPMorgan Chase Bank N.A., BofA Securities, Inc., PNC Capital Markets LLC, and Wells Fargo Securities, LLC.

"The extension of our $2.0 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 Daniel McHenry, 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 past 25 years."

Group 1 owns and operates 201 automotive dealerships, 267 franchises, and 46 collision centers in the United States and the United Kingdom that offer 34 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.

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