Asbury Automotive Group has amended its $1.45 billion, five-year syndicated senior credit facility.
Asbury’s new senior credit facility replaces the company’s previous facility, and provides additional borrowing availability, increased financial flexibility, and an extended maturity date. The new vehicle floor plan interest rate is reduced to one-month LIBOR plus 110 basis points and the used vehicle floor plan interest is reduced to one-month LIBOR plus 140 basis points (for LIBOR loans). The interest rate for the revolving credit facility will bear interest in a range of LIBOR plus 100 basis points to LIBOR plus 200 basis points (for LIBOR loans), based on the Company’s consolidated lease adjusted leverage ratio.
Asbury’s new senior credit facility consists of:
- $250 million revolving credit facility
- $1,040 million new vehicle revolving floor plan facility
- $160 million used vehicle revolving floor plan facility
The new senior credit facility also provides for the expansion of the availability, subject to certain conditions, up to a total of $1.625 billion. Additionally, the maturity date was extended from July 2021 to September 2024.
“This new $1.45 billion senior credit facility provides additional financial flexibility to support our business strategy over the next five years.” said Sean Goodman, Asbury’s Senior Vice President and CFO. “We want to thank our lending partners for their continued support.”
The syndication was arranged through BofA Securities. JPMorgan Chase Bank, and Wells Fargo Bank served as co-syndication agents. Mercedes-Benz Financial Services USA and Toyota Motor Credit served as co-documentation agents. Bank of America will serve as administrative agent.
Lenders in the new syndicated credit facilities include five manufacturer-affiliated finance companies consisting of American Honda Finance Corporation, BMW Group Financial Services, Mercedes-Benz Financial Services USA, Nissan Motor Acceptance, and Toyota Motor Credit, and it includes eight commercial banks and other lending institutions consisting of Bank of America, Branch Banking & Trust Company, JPMorgan Chase Bank, Mass Mutual Asset Finance, Santander Bank, SunTrust Bank, U.S. Bank, and Wells Fargo Bank.
Duluth, GA-based Asbury Automotive Group currently operates 87 dealerships, consisting of 106 franchises, representing 30 domestic and foreign brands of vehicles.