Group 1 Automotive’s $1.8 Billion Revolving Credit Facility

Simpson Thacher represented Group 1 Automotive, Inc. (NYSE: GPI), an international, Fortune 500 automotive retailer, in its $1.8 billion five-year revolving syndicated credit facility with 23 financial institutions that will expire in June 2024 and can be expanded to $2.1 billion total availability.

The revolving facility will provide $1.44 billion for inventory floorplan financing. The facility will also provide $360 million for working capital, acquisitions and general corporate purposes, of which up to $125 million can be borrowed in either Euros or Pounds Sterling.

Group 1 owns and operates 181 automotive dealerships, 233 franchises and 47 collision centers in the United States, the United Kingdom and Brazil that offer 30 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.

Lenders in the syndicated facility included four manufacturer-affiliated finance companies and 19 commercial banks. The four manufacturer-affiliated finance companies were: Mercedes-Benz Financial Services USA LLC; Toyota Motor Credit Corporation; BMW Financial Services NA, LLC; and American Honda Finance Corporation. The 19 commercial banks were: U.S. Bank National Association; Bank of America, N.A.; JPMorgan Chase Bank, N.A.; Wells Fargo Bank, National Association; Comerica Bank; BBVA USA; Branch Banking & Trust; MassMutual Asset Finance LLC; TD Bank, N.A.; Bank of the West; KeyBank National Association; NYCB Specialty Finance Company, LLC.; Capital One NA; PNC Bank, National Association; Barclays Bank PLC; Zions Bancorporation, N.A. (dba Amegy Bank); Ally Bank.; Amarillo National Bank; and Bank of Oklahoma. The syndication was arranged through U.S. Bank National Association, JPMorgan Chase Bank N.A., BofA Securities, Inc., and Wells Fargo Securities, LLC.

The Simpson Thacher team included Robert Rabalais (Picture), Andrew Lanius and Michael Paparozzi (Banking and Credit); Rob Holo and Nicole Humphrey (Tax); and Andrew Blau and Caitlin Grimes (ERISA).

Involved fees earner: Andrew Blau – Simpson Thacher & Bartlett; Caitlin Grimes – Simpson Thacher & Bartlett; Robert Holo – Simpson Thacher & Bartlett; Nicole Humphrey – Simpson Thacher & Bartlett; Andrew Lanius – Simpson Thacher & Bartlett; Michael Paparozzi – Simpson Thacher & Bartlett; Robert Rabalais – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: Group 1 Automotive, Inc.;

Author: Ambrogio Visconti