Company: GPI
Filing Date: 2025-06-03
Form Type: 8-K
Source: 0001031203-25-000039
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Company: GROUP 1 AUTOMOTIVE INC
Filing Date: 2025-06-03
Form: 8-K
Item: Item 1.01
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Item 1.01 Entry into a Material Definitive Agreement.

Effective May 30, 2025 (the “ Closing Date”), Group 1 Automotive, Inc. (the “ Company”) entered into an amended and restated five-year revolving syndicated credit arrangement with 18 financial institutions, including 6 manufacturer-affiliated finance companies (the “ Credit Facility”). The Credit Facility consists of two tranches: one for U. S. vehicle inventory floorplan financing (the “ Floorplan Line”) and another for working capital and general corporate purposes, including acquisitions (the “ Acquisition Line”). As of the Closing Date, the aggregate maximum borrowing commitment of the two tranches equals $3.5 billion. The Floorplan Line provides a maximum borrowing commitment of $1.75 billion as of the Closing Date. The Acquisition Line provides a maximum borrowing commitment of $1.75 billion as of the Closing Date, which may be increased or decreased from time to time so long as the Acquisition Line does not exceed 50 percent of the total Credit Facility. Unused Acquisition Line commitments may be reallocated to the Floorplan Line at the Company’s request. A maximum of $300 million of the Acquisition Line can be borrowed in either Euros or Pounds Sterling. The aggregate maximum borrowing commitment can be increased to a maximum of $4.5 billion, if one or more existing lenders agree to increase their commitments, or if the Administrative Agent approves the admission of one or more financial institutions as additional lenders. The Acquisition Line bears interest at the Secured Overnight Financing Rate (“ SOFR”) (including a 10 basis point spread adjustment) plus a margin that ranges from 100 to 200 basis points, depending on our leverage ratio. The Floorplan Line bears interest at a rate equal to SOFR (including a 10 basis point spread adjustment) plus 110 basis points (for new vehicle inventory) and 140 basis points (for used vehicle inventory). All of our U. S. dealership-owning subsidiaries are co-borrowers under our Credit Facility and as such, they are liable on a joint and several basis for obligations under the Credit Facility, with certain exceptions. Our Credit Facility contains a number of significant covenants that, among other things, restrict our ability to dispose of assets, incur additional indebtedness, create liens on assets, make investments and engage in mergers or consolidations. We are also required to comply with specified financial tests and ratios defined in the Credit Facility, such as the Fixed-Charge Coverage Ratio and the Total Adjust