Asbury amends credit facility to bring size to $1.1 billion, cut rates

By Jennifer Chiou

New York, Aug. 8 - Asbury Automotive Group, Inc. announced that it amended and restated its five-year syndicated senior credit facility with Bank of America, NA as administrative agent.

According to a news release, the new vehicle inventory floor plan facility was increased by $200 million, bringing the total size of the facility to $1.1 billion.

The facility may be expanded to up to $1.4 billion.

The changes also included an extension of the maturity to August 2018 from October 2016.

In addition, the release stated that the new vehicle and used vehicle floor plan interest rates will also decrease 25 basis points to one-month Libor plus 125 bps and one-month Libor plus 150 bps, respectively.

The Duluth Ga.-based automotive retailer said in an 8-K filing with the Securities and Exchange Commission that the credit agreement provides for up to $825 million for new vehicle inventory floor plan financing, up to $100 million for used vehicle inventory floor plan financing and other general corporate purposes, and up to $175 million for general corporate purposes.

Merrill Lynch, Pierce, Fenner & Smith Inc., JPMorgan Chase Bank, NA and Wells Fargo Bank are the co-syndication agents.

The commitment fee is 30 bps per year prior to the delivery of the initial compliance certificate and will range from 30 bps to 50 bps per year after the compliance certificate is delivered.

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