Group 1 Automotive said it plans to raise $1.25 billion through a split senior note offering, dividing the deal into $625 million of notes due 2032 and $625 million due 2035.
The company said the proceeds, together with cash on hand, will fund its previously announced acquisition of dealership assets and related real estate from Hennessy Automobile Companies and affiliates. If the Hennessy deal has not closed by the required date, Group 1 said it will have to redeem the 2032 notes at 100% of issue price plus accrued interest.
Before that acquisition closes, Group 1 plans to use the note proceeds to repay part of the borrowing on its acquisition line under its revolving credit facility, then reborrow those funds when the Hennessy transaction closes.
The company said it owns and operates 249 dealerships, 310 franchises and 32 collision centers across the U.S. and the U.K., covering 37 brands. As a result of these announcements, the company's shares have moved -2.16% on the market, and are now trading at a price of $294.26. For more information, read the company's full 8-K submission here.
