Group 1 Automotive has extended its $1.8 billion revolving syndicated credit facility with 23 financial institutions, including four captive finance companies, for another five years, according to a company release. The credit facility will expire in June 2024 and have the option to expand to $2.1 billion. It was originally set to mature in June 2021.
American Honda Finance Corp., BMW Financial Services, Mercedes-Benz Financial Services, and Toyota Motor Credit Corp. will continue — along with Bank of America, JPMorgan Chase, U.S. Bank, and Wells Fargo and 15 others financial institutions — to provide financing options to Group 1’s dealer network, which reaches across the U.S., U.K. and Brazil.
The revolving credit line will provide $1.44 billion in floorplan financing for new and used vehicles to Group 1’s 181 dealers. An additional $360 million will be provided for operational costs, including working capital and acquisitions. Group 1 will be able to borrow as much as $125 million of that capital in euros or pounds.
Floorplan interest rates for new vehicles will be one-month Libor plus 110 basis points; rates for used vehicles will be one-month Libor plus 140 basis points.Like This Post