Group 1 Automotive gets $1.8 billion five-year syndicated revolver

By Tali Rackner

Norfolk, Va., June 17 – Group 1 Automotive, Inc. completed a $1.8 million five-year revolving syndicated credit facility with 24 financial institutions, according to a press release.

The facility may be expanded to $2.1 billion.

The revolver will provide one tranche of $1.45 billion for inventory floorplan financing and another tranche of $350 million for working capital, acquisitions and general corporate purposes, of which up to $125 million can be borrowed in either euros or pounds sterling.

New vehicle and used vehicle floorplan interest rates remain at one-month Libor plus 125 basis points and one-month Libor plus 150 bps, respectively.

"The expanded $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," senior vice president and chief financial officer John C. Rickel said in the release.

The syndication was arranged through JPMorgan Chase Bank NA, Bank of America Merrill Lynch and Wells Fargo Securities, LLC.

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

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