FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / Press Releases / Read Press Release


Merrill Lynch Arranges Asbury Automotive’s $1.1 Billion Amendment

August 09, 2013, 07:57 AM
Filed Under: Automotive
Related: Merrill Lynch

Asbury Automotive Group, Inc., one of the largest automotive retail and service companies in the U.S., announced that it has amended and restated its five-year syndicated senior credit facility.  Under the amended and restated facility, the new vehicle inventory floor plan facility was increased by $200 million, bringing the total size of the credit facility to $1.1 billion.  The new vehicle and used vehicle floor plan interest rates will also decrease 25 basis points to one-month LIBOR plus 125 basis points and one-month LIBOR plus 150 basis points, respectively.  Additionally, the maturity was extended from October 2016 to August 2018.

The amended and restated facility provides for the following borrowings on a revolving basis:

  • up to $825 million for new vehicle inventory floor plan financing,
  • up to $100 million for used vehicle inventory floor plan financing and other general corporate purposes, and
  • up to $175 million for general corporate purposes.

The amended and restated facility also provides for the expansion of the availability thereunder, subject to certain conditions, up to a total availability of $1.4 billion.

The syndication was arranged through Merrill Lynch, Pierce, Fenner & Smith Incorporated. JPMorgan Chase Bank, N.A., and Wells Fargo Bank served as co-syndication agents. Mercedes-Benz Financial Services USA LLC and Toyota Motor Credit Corporation served as co-documentation agents. Bank of America, N.A. will serve as administrative agent. Lenders in the new syndicated credit facilities include five manufacturer-affiliated finance companies - American Honda Finance Corporation, BMW Group Financial Services NA, LLC, Mercedes-Benz Financial Services USA LLC, Nissan Motor Acceptance Corporation, and Toyota Motor Credit Corporation – and seven commercial banks and other lending institutions – Bank of America, N.A., Bank of the West, Deutsche Bank Trust Company Americas, JPMorgan Chase Bank, N.A.,  Mass Mutual Asset Finance LLC, U.S. Bank National Association, and Wells Fargo Bank, N.A.

"The amended credit facility strengthens our financial flexibility and reduces our floor plan borrowing costs for the next five years" said Scott Krenz, Asbury's Senior Vice President and CFO. "We are extremely pleased with the continued support from both our banking and manufacturing partners."

Asbury Automotive Group, Inc., headquartered in Duluth, Georgia, a suburb of Atlanta, is one of the largest automobile retailers in the U.S.  Built through a combination of organic growth and a series of strategic acquisitions, Asbury currently operates 79 retail auto stores, encompassing 100 franchises for the sale and servicing of 29 different brands of American, European and Asian automobiles.   

Week's News

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.