HOUSTON -

Group 1 Automotive completed a $1.7 billion five-year revolving syndicated credit facility with 25 financial institutions last week. The dealer group indicated the facility will expire in June 2018 and can be expanded to $1.95 billion in total availability.

Executives highlighted the revolving facility will provide $1.38 billion for inventory floorplan financing.  They noted the facility will also provide $320.0 million for working capital, acquisitions and general corporate purposes, of which up to $125.0 million can be borrowed in either Euros or Pounds Sterling.

Group 1 pointed out new-vehicle and used-vehicle floor plan interest rates will decrease 25 basis points to one-month LIBOR plus 125 basis points and one-month LIBOR plus 150 basis points, respectively.

Lenders in the syndicated facility include six manufacturer-affiliated finance companies and 19 commercial banks. 

The six manufacturer-affiliated finance companies are:

—Toyota Motor Credit Corp.
—Mercedes-Benz Financial Services USA
—BMW Financial Services
—American Honda Finance Corp.
—Nissan Motor Acceptance Corp.
—VW Credit

The 19 commercial banks are:

—Bank of America
—Comerica Bank
—JPMorgan Chase Bank
—Wells Fargo Bank
—U.S. Bank
—Compass Bank (d/b/a BBVA Compass)
—Capital One
—Bank of the West
—KeyBank National Association
—MassMutual Asset Finance
—Barclays Bank
—Amegy Bank
—Branch Banking & Trust Co.
—TD Bank
—Ally Insurance Holdings
—NYCB Specialty Finance Co.
—Amarillo National Bank
—BOKF (d/b/a Bank of Oklahoma)
—Cadence Bank

The syndication was arranged through J.P. Morgan Securities and Merrill Lynch, Pierce, Fenner & Smith.

“The expanded $1.7 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,” said John Rickel, Group 1’s senior vice president and chief financial officer.

The commitments made by the 20 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 five new lenders join our syndicate, including American Honda Finance Corp.,, a new manufacturer-affiliated partner,” Rickel continued.

Rickel went on to mention that based on the vehicle inventory financed under the credit facility of $945.0 million at March 31, net pretax floor plan interest expense would decrease by about $0.3 million per quarter starting in the third quarter of this year through the remainder of the new facility.

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