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Group 1 Automotive Completes New $1.8B Credit Facility With Lenders

June 20, 2016, 07:48 AM
Filed Under: Automotive

Group 1 Automotive, Inc., an international, Fortune 500 automotive retailer, today announced that it has completed a $1.8 billion five-year revolving syndicated credit facility with 24 financial institutions that will expire in June 2021 and can be expanded to $2.1 billion total availability.

The revolving facility will provide $1.45 billion for inventory floorplan financing.  The facility will also provide $350.0 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 remain at one-month LIBOR plus 125bps and one-month LIBOR plus 150bps, respectively.

Lenders in the syndicated facility include 6 manufacturer-affiliated finance companies and 18 commercial banks.  The 6 manufacturer-affiliated finance companies are: Mercedes-Benz Financial Services USA LLC; Toyota Motor Credit Corporation; BMW Financial Services NA, LLC; American Honda Finance Corporation; Nissan Motor Acceptance Corporation; and Volkswagen Credit, Inc.  The 18 commercial banks are: Bank of America, N.A.; Comerica Bank; JPMorgan Chase Bank, N.A.; Wells Fargo Bank, N. A.; U.S. Bank, N.A.; Compass Bank (d/b/a BBVA Compass); MassMutual Asset Finance LLC; Branch Banking & Trust Company; TD Bank, N.A.; Bank of the West; KeyBank National Association; NYCB Specialty Finance Company, LLC.; Barclays Bank PLC; ZB, N.A. (d/b/a Amegy Bank); Lloyds Bank plc; Ally Insurance Holdings Inc.; Amarillo National Bank; and BOKF, NA (d/b/a Bank of Oklahoma).  The syndication was arranged through JP Morgan Chase Bank N.A., Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Wells Fargo Securities, LLC.

"The expanded $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."

Group 1 owns and operates 162 automotive dealerships, 213 franchises, and 37 collision centers in the United States, the United Kingdom and Brazil 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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