HOUSTON — Group 1 Automotive Inc. announced that it has completed a $1.35 billion, five-year revolving syndicated credit facility with 21 financial institutions that will expire in June 2016. The credit facility also can be expanded to $1.6 billion.
The revolving facility will provide $1.1 billion for inventory floorplan financing and $250 million for working capital, acquisitions and general corporate purposes, of which up to half can be borrowed in either Euros or Pounds Sterling.
Lenders in the syndicated facility include 17 commercial banks and captive finance companies Toyota Motor Credit Corporation, BMW Financial Services, Mercedes-Benz Financial Services USA and Nissan Motor Acceptance Corporation.
The syndication was arranged through J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated.
"The new $1.35 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 the 14 existing lenders are a testament to the strong relationships we have established with our financial partners over the years and we are delighted to have seven new lenders join our syndicate."
Group 1 also noted that, based on the vehicle inventory financed under the credit facility of $689.0 million at March 31, pretax interest expense would increase by about $1.1 million a quarter under the new arrangement.