Group 1 Automotive gets $1.7 billion five-year syndicated revolver

By Tali David

Minneapolis, June 26 - Group 1 Automotive, Inc. entered into an amended and restated five-year revolving syndicated credit arrangement with 25 financial institutions, including six manufacturer-affiliated finance companies, on June 20.

The facility, which expires in June 2018, consists of two tranches: one for U.S. vehicle inventory floorplan financing and another for working capital and general corporate purposes, including acquisitions, according to an 8-K filed with the Securities and Exchange Commission.

The aggregate maximum borrowing commitment of the two tranches equals $1.7 billion.

The floorplan line provides a maximum borrowing commitment of $1.6 billion, of which a maximum of $220 million can be re-designated as additional acquisition line borrowing commitment.

The acquisition line provides a maximum borrowing commitment of $320 million and a minimum borrowing commitment of $100 million. A maximum of $125 million of the acquisition line can be borrowed in either euros or pound sterling.

The credit facility can be expanded to its maximum commitment of $1.95 billion, subject to participating lender approval, the filing said.

The acquisition line bears interest at Libor plus 150 basis points to 250 bps, depending on leverage ratio.

The floorplan line bears interest at rates equal to Libor plus 125 bps for new vehicle inventory and Libor plus 150 bps for used vehicle inventory.

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

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