Group 1 Automotive amends and extends its $2.0 billion revolving credit facility

HOUSTON, March 9, 2022 /PRNewswire/ — Group 1 Automotive, Inc. (NYSE: GPI) (“Group 1” or the “Company”), a Fortune 300 international automotive retailer with 201 dealerships located in the United States and United Kingdom, today announced that it has entered into a $2.0 billion five-year revolving syndicated credit facility with 21 financial institutions that will expire in March 2027 and can be increased to $2.4 billion in total availability.

The revolving facility will provide $1.651 billion for funding the inventory inventory plan. New vehicle and used vehicle floor plan interest rates are at SOFR (including a 10 bps spread adjustment) plus 110 bps and 140 bps, respectively. The facility will also provide $349.0 million for working capital, acquisitions and general corporate purposes, which can be extended up to a maximum of $500.0 million, or 25% of the total credit facility. This working capital line also makes it possible to borrow up to $150.0 million in euros or pounds sterling.

The syndicated facility lenders include six manufacturer-affiliated finance companies and 15 commercial banks. The six manufacturer-affiliated finance companies are: Mercedes-Benz Financial Services USA LLC; Toyota Motor Credit Corporation; BMW NA Financial Services, LLC; the American finance company Honda; Credit VW, Inc.; and Hyundai Capital America, Inc. The 15 commercial banks are: US Bank National Association; Bank of America, North America; JPMorgan Chase Bank, North America; Wells Fargo Bank, National Association; PNC Bank, National Association; Comerica Bank; Truist Bank; TD Bank, North America; Capital One, North America; Allied bank; NYCB Specialty Finance Company, LLC; Barclays Bank PLC; Zions Bancorporation, NA (dba Amegy Bank); Santander Bank, N / A; and BOKF, NA (dba Bank of Oklahoma). The syndication was arranged through the US Bank National Association, JPMorgan Chase Bank NA, BofA Securities, Inc., PNC Capital Markets LLC and Wells Fargo Securities, LLC.

“The extension of our $2.0 billion revolving facility further strengthens Group 1’s balance sheet by locking in significant, reasonably priced capital for vehicle financing and acquisition growth over the next five years,” said Daniel McHenry, Senior Vice President and Chief Financial Officer of Group 1. “The commitments made by our lenders are testament to the strong relationships we have built with our financial partners over the past 25 years.”

ABOUT GROUPE 1 AUTOMOTIVE, INC.
Group 1 owns and operates 201 car dealerships, 267 franchisees, and 46 collision centers at United States and the UK this offer 34 automobile brands. Through its dealers, the Company sells new and used cars and light trucks; organizes the financing of related vehicles; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.

Group 1 discloses additional information about the company, its business and its results of operations at www.group1corp.com, www.group1auto.com, www.group1collision.com, www.acceleride.com, www.facebook.com/group1autoand www.twitter.com/group1auto.

FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements relating to future, not past, events and are based on our current expectations and assumptions about our business, economy and other future conditions. In this context, forward-looking statements often include statements regarding our strategic investments, objectives, plans, projections and directions regarding our financial condition, results of operations and business strategy, and often contain words such as ” expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “should”, “plans”, “may” or “will” and similar expressions. Although management believes these forward-looking statements are reasonable as made, there can be no assurance that future developments affecting us will be those we anticipate. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among others, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain new vehicle inventory and used vehicles, (e) our relationship with our automakers and the manufacturers’ willingness to approve future acquisitions, (f) our cost of financing and availability of credit to consumers, (g) our ability to make acquisitions and divestitures and the risks associated therewith, (h) exchange controls and currency fluctuations, (i) the impacts of COVID-19 on our business, (j) the impacts of any potential global recession, (k ) our ability to maintain sufficient cash to operate, (l) the risk that the proposed transactions will not be completed in a timely manner, and (m) our ability to successfully integrate recent acquisitions and future. For additional information about known important factors that could cause our actual results to differ materially from our projected results, please see our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, our quarterly reports on Form 10-Q and our current reports. Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date on which they are made, whether as a result of new information, future events or otherwise.

Investor contacts:
Jason Babbitt
Vice President, Treasurer
Group 1 Automotive, Inc.
713-647-5759 | [email protected]

Media contacts:
Pete DeLongchamps
Senior Vice President, Manufacturer Relations, Financial Services and Public Affairs
Group 1 Automotive, Inc.
713-647-5770 | [email protected]
Where
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | [email protected]

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SOURCE Group 1 Automotive, Inc.

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