Group 1 Automotive units get up to $250 million master credit agreement

By Mary-Katherine Stinson

Lexington, Ky., Feb. 14 – Group 1 Automotive, Inc.’s subsidiaries closed on a master credit agreement with Wells Fargo Bank, NA as the lender, effective Feb. 12, according to a press release and an 8-K filing with the Securities and Exchange Commission.

The agreement provides term loans on a periodic basis in a principal amount equaling the lesser of $250 million and 80% of the sum of the value of all mortgaged properties. As of closing, the principal amount available for borrowing is $48,396,000.

Interest on the term loans will accrue at term SOFR plus 175 basis points.

Once repaid, term loans may not be reborrowed.

The credit agreement matures on March 1, 2031.

The agreement is secured by, among other things, mortgages on certain borrowers’ and subsidiaries’ properties, as well as security interests on the fixtures and improvements, replacements, accessions and related additions. The borrowers have the right to include additional properties as collateral and increase the principal amount available for borrowing up to the $250 million cap.

Group 1 Realty, Inc., AMR Real Estate Holdings, LLC, Group 1 Realty NE, LLC, G1R Clear Lake, LLC and LHM ATO, LLC are the subsidiary borrowers.

Group 1 is a Houston-based owner and operator of automotive dealerships, franchises and collision service centers.

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