Group 1 Automotive Expands Credit Facility

Group 1 Automotive ($GPI@US) recently announced that it was expanding a $2 billion, 5-year revolving, syndicated credit facility. The credit facility is supported by 21 financial institutions and will not total $2.4 billion and is set to expire in March of 2027. The concept behind the credit plan is to provide more than $1.5 billion in inventory floorplan financing for the firm. The company is also going to receive $349 million in working capital that can support acquisitions and general corporate purchases. CFO Daniel McHenry said, “the extension of our revolving credit facility further strengthens Group 1’s balance sheet by locking in ample, [reasonably] priced capital for vehicle financing…” At press time, Group 1 stock was trading at just over $188 per share, down more than a percent in early trading.