Company: GPI
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001031203-25-000049
Chunk: 25

Company: GROUP 1 AUTOMOTIVE INC
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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1 million of unamortized debt issuance costs as of June 30, 2025 and December 31, 2024, respectively, which are included in Prepaid expenses and Other long-term assets in the Company’s Condensed Consolidated Balance Sheets and amortized over the term of the facility.Floorplan Notes Payable — Manufacturer AffiliatesFMCC FacilityThe Company has a $200.0 million floorplan arrangement with FMCC for financing of new Ford vehicles in the U.S. (the “FMCC Facility”). The FMCC Facility bears interest at the U.S. prime rate which was 7.50% as of June 30, 2025.

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Table of Contents GROUP 1 AUTOMOTIVE, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) – (Continued)

GM Financial FacilityThe Company has a master loan agreement with General Motors Financial for financing of new GM vehicles (the “GM Financial Facility”). The GM Financial Facility bears interest at the U.S. prime rate less 100 basis points. As of June 30, 2025, the GM Financial Facility had a total borrowing capacity of $348.1 million. Other Manufacturer FacilitiesThe Company has other credit facilities in the U.S. and the U.K., respectively, with financial institutions affiliated with manufacturers for financing of new, used and rental vehicle inventories. As of June 30, 2025, borrowings outstanding under these facilities totaled $426.9 million, comprised of $195.6 million in the U.S. and $231.4 million in the U.K., with annual interest rates ranging from approximately 0.3% to 8%. Interest rates on the Company’s manufacturer facilities vary across manufacturers.Offset AccountsOffset accounts consist of immediately available cash used to pay down the U.S. Floorplan Line, FMCC Facility and GM Financial Facility, and therefore offset the respective outstanding balances in the Company’s Condensed Consolidated Balance Sheets. The offset accounts are the Company’s primary options for the short-term investment of excess cash.During the three months ended June 30, 2025, the Company entered into an addendum to the master loan agreement with General Motors Financial and established an offset account under the GM Financial Facility (the “GM Floorplan Offset”). As of June 30, 2025, the balance for the GM Floorplan Offset was $—.

11. CASH FLOW INFORMATION 

Non-Cash ActivitiesThe accrual for capital