HOUSTON -

Group 1 Automotive announced this week it has completed a $1.35-billion five-year revolving syndicated credit facility with 21 financial institutions.

The company said this new facility expires in June 2016 and can be expanded to $1.6 billion total availability.

Executives highlighted the revolving facility will provide $1.1 billion for inventory floor plan financing. They added the facility will also provide $250.0 million for working capital, acquisitions and general corporate purposes, of which up to half can be borrowed in either euros or pounds sterling.

Lenders in the syndicated facility include four manufacturer-affiliated finance companies — Toyota Motor Credit Corp., BMW Financial Services N.A., Mercedes-Benz Financial Services and Nissan Motor Acceptance Corp.

The remaining lenders include 17 commercial banks:

—JPMorgan Chase Bank, N.A.
—Bank of America, N.A.
—Comerica Bank.
—U.S. Bank, N.A.
—Wells Fargo Bank, National Association.
—Capital One, N.A.
—Compass Bank
—Key Bank National Association
—MassMutual Asset Finance.
—Bank of the West.
—Flagstar Bank, FSB
—Amegy Bank, N.A.
—Barclays Bank.
—Motors Insurance Corp.
—Sovereign Bank
—BOKF, N.A. doing business as Bank of Oklahoma.
—Amarillo National Bank.

Group 1 mentioned the syndication was arranged through J.P. Morgan Securities and Merrill Lynch, Pierce, Fenner & Smith.

“The new $1.35 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,” explained John Rickel, Group 1’s senior vice president and chief financial officer.

“The commitments made by the 14 existing lenders are a testament to the strong relationships we have established with our financial partners over the years and we are delighted to have seven new lenders join our syndicate,” Rickel continued.

Group 1 also noted that based on the vehicle inventory financed under the credit facility of $689.0 million at March 31, pretax interest expense would increase by about $1.1 million a quarter under the new arrangement.