Group 1 Automotive priced a $1.25 billion senior note offering split evenly between two tranches: $625 million of 6.250% notes due 2032 and $625 million of 6.625% notes due 2035.
The company said it expects the offering to close on Sept. 22, 2026. It plans to use the proceeds, along with cash on hand, to help fund its previously announced acquisition of dealership assets and related real estate from Hennessy Automobile Companies. Until that deal closes, Group 1 said it intends to use the proceeds to pay down borrowings under its revolving credit facility, then reborrow at the acquisition closing.
If the Hennessy acquisition does not close by the later of Jan. 6, 2027 or an extended outside date under the purchase agreement, Group 1 will have to redeem all of the 2032 notes at 100% of issue price plus accrued interest.
Group 1 said it operates 249 dealerships, 310 franchises and 32 collision centers in the U.S. and U.K., offering 37 vehicle brands. As a result of these announcements, the company's shares have moved -2.34% on the market, and are now trading at a price of $281.00. Check out the company's full 8-K submission here.
