Group 1 Automotive amends and extends $1.8 billion revolving credit facility
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HOUSTON –
Group 1 Automotive enhanced its financial resources this week to bolster its inventory and for other projects.
The dealer group 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. Group 1 said this facility can be expanded to $2.1 billion total availability.
Management noted 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.
Group 1 explained new-vehicle and used-vehicle floorplan interest rates are at one-month LIBOR plus 110 basis points and one-month LIBOR plus 140 basis points, respectively.
According to a news release, 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
— Toyota Motor Credit Corp.
— BMW Financial Services
— American Honda Finance Corp.
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The 19 commercial banks are:
—U.S. Bank
—Bank of America
— JPMorgan Chase
— Wells Fargo
— Comerica Bank
— BBVA USA
— Branch Banking & Trust
— MassMutual Asset Finance
— TD Bank
— Bank of the West
— KeyBank National Association
— NYCB Specialty Finance Company
— Capital One
— PNC Bank
— Barclays Bank
— Zions Bancorporation (Amegy Bank)
— Ally Bank
— Amarillo National Bank
— Bank of Oklahoma
The syndication was arranged through U.S. Bank, JPMorgan Chase, BofA Securities and Wells Fargo Securities.
“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,” Group 1 senior vice president and chief financial officer John Rickel said.
“The commitments made by our lenders are a testament to the strong relationships we have established with our financial partners over the years,” Rickel went on to say.
