Genuine Parts gets $2.6 billion five-year multicurrency revolver, loan

By Susanna Moon

Chicago, Nov. 2 – Genuine Parts Co. obtained a $2.6 billion five-year syndicated facility consisting of a $1.5 billion multicurrency revolving credit facility and a $1.1 billion term loan A.

The facility contains an option to increase the size by up to another $1 billion.

The company refinanced its $1.2 billion unsecured revolving line of credit set to mature in September 2022 on Monday with Bank of America, NA as administrative agent and JPMorgan as syndication agents, according to an 8-K filing with the Securities and Exchange Commission.

The new term revolver and term loan A mature on Oct. 30, 2022.

In related news, Genuine Parts financed the purchase of Alliance Automotive Group for about $2 billion, including debt repayment, with about $2 billion of debt financing, according to a company announcement.

In addition to the loans, the company also sold senior fixed rate notes with “a number of investors,” consisting of €225 million notes due Oct. 30, 2024, €250 million notes due Oct. 30, 2027, €125 million notes due Oct. 30, 2029, €100 million notes due Oct. 30, 2032 and $120 million notes due Oct. 30, 2027.

The company said on Sept. 25 that it planned to issue new multi-currency senior notes as well as negotiate new term loans and an increase to its revolver in order to finance its planned $2 billion acquisition of Alliance Automotive.

Atlanta-based Genuine Parts distributes automotive replacement parts.

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