Group 1 Automotive Expands Credit Facility
12 May 1998
Group 1 Automotive Expands Credit FacilityHOUSTON, May 12 -- Group 1 Automotive, Inc. , a leading operator and consolidator in the automotive retailing industry, announced today that it has received commitments to increase its existing three-year, $125 million revolving credit facility to $345 million. Funds will be used for acquisitions, inventory financing, capital expenditures, working capital and general corporate purposes. B.B. Hollingsworth Jr., Group 1's chairman, president and chief executive officer, said, "Our amended credit facility was over-subscribed, allowing us to increase it from the $250 million originally planned. The facility will be an important source of financing as we build Group 1 into one of the premier automobile retailers. The commercial banks have been very supportive and I am pleased that our original group will be expanded by six banks. This has established new relationships which will facilitate future transactions." The credit facility is secured by inventory and property, plant and equipment and carries an interest rate below the prime rate. The bank group is comprised of administrative agent Chase Securities, Inc., Comerica Bank, the floorplan agent, NationsBank of Texas, the documentation agent, co-agents U.S. Bank and Bank of America and six other participants. Group 1 was founded to become a leading operator and consolidator in the highly fragmented automotive retailing industry. Upon completion of all previously announced acquisitions, Group 1 will own 58 dealership franchises comprised of 24 different brands, and 12 collision service centers located in Texas, Oklahoma, New Mexico, Colorado, Florida and Georgia. Through its dealerships the company sells new and used cars and light trucks, provides maintenance and repair services, sells replacement parts and arranges related financing, insurance and service contracts. This press release contains certain forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, which involve known and unknown risks, uncertainties or other factors not under the company's control which may cause the actual results, performance or achievements of the company to be materially different from the results, performance or other expectations implied by these forward-looking statements. Some of these risks and factors include, but are not limited to those disclosed in the company's filings with the Securities and Exchange Commission. SOURCE Group 1 Automotive, Inc.