Group 1 Automotive, an international, Fortune 300 automotive retailer with 201 dealerships located in the U.S. and UK, completed a $2 billion five-year revolving syndicated credit facility with 21 financial institutions that will expire in March 2027 and can be expanded to $2.4 billion total availability.

The revolving facility will provide $1.65 billion for inventory floorplan financing. New vehicle and used vehicle floorplan interest rates are at SOFR (including a 10 bps spread adjustment) plus 110 bps and 140 bps, respectively. The facility will also provide $349 million for working capital, acquisitions and general corporate purposes, which can be expanded to a maximum of $500 million, or 25% of the total credit facility. This working capital line also allows for up to $150 million to be borrowed in either euros or pounds sterling.

Lenders in the syndicated facility included six manufacturer-affiliated finance companies and 15 commercial banks. The six manufacturer-affiliated finance companies are Mercedes-Benz Financial Services, Toyota Motor Credit, BMW Financial Services, American Honda Finance, VW Credit and Hyundai Capital America. The 15 commercial banks are U.S. Bank, Bank of America, JPMorgan Chase Bank, Wells Fargo Bank, PNC Bank, Comerica Bank, Truist Bank, TD Bank, Capital One, Ally Bank, NYCB Specialty Finance Company, Barclays Bank, Zions Bancorporation, Santander Bank and BOKF.

The syndication was arranged through U.S. Bank, JPMorgan Chase Bank, BofA Securities, PNC Capital Markets and Wells Fargo Securities.

“The extension of our $2.0 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,” Daniel McHenry, senior vice president and CFO of Group1, said. “The commitments made by our lenders are a testament to the strong relationships we have established with our financial partners over the past 25 years.”