Group 1 Automotive announced the expansion of $1.8 to $2.1 billion Revolving Credit Facility

Extension to $2.1 billion Revolving Credit facility will be strengthening Group 1 Automotive’s balance sheet with trustful lenders.

FREMONT, CA: Houston-based Group 1 Automotive, one of the largest automotive dealership and franchise group in the United States, ended the finance of 1.8 billion dollars, a five year revolving syndicated credit facility with the collaboration of 23 financial institutions.

The new evolving facility tends to provide $1.44 million for inventory floor plan financing. This induction also focuses on providing $360.0 million for working capital, acquisitions, and general corporate purposes respectively. The company can also extend the amount to $2.1 billion depending on the finance status and demand.

In this consent, Group 1 offers $125.0 million that can be borrowed in either Euros or Pounds Sterling. New vehicles and used vehicle floor plan interest rates are at one-month LIBOR plus 110bps and one-month LIBOR plus 140bps.

Mercedes-Benz Financial Services USA LLC; Toyota Motor Credit Corporation; BMW Financial Services NA, LLC and American Honda Finance Corporation are the four manufacturer-affiliated finance lending companies in the syndicated facility.

In addition to this, the investors include nineteen commercial bank giants including U.S. Bank National Association; Bank of America, N.A.; JPMorgan Chase Bank, N.A.; Comerica Bank; MassMutual Asset Finance LLC; among others.

"The extension of our $1.8 billion revolving facilities 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," quoted John C. Rickel, Group 1's senior VP and Chief Financial Officer.

According to him, the commitments made by lenders are a testament to the strong relationships established with financial partners over the years.

As one of the leading dealership in U.S. Group 1 Automotive deals with selling new/used vehicles; vehicle parts; service contracts; and offer services like vehicle finance and maintenance and repair for the vehicles.