Group 1 Automotive Announces $550 Million Offering of Senior Notes
Group 1 Automotive, Inc. (NYSE: GPI) plans to offer $550 million in senior unsecured notes due 2028, subject to market conditions. The proceeds will be used to redeem existing 5.000% Senior Notes due 2022, along with related expenses. The offering is targeting qualified institutional buyers and non-U.S. persons, exempt from registration under securities laws. Group 1 operates 186 automotive dealerships and provides vehicle sales, financing, and maintenance services across the U.S., UK, and Brazil.
- Intended use of proceeds for redeeming existing debt, potentially reducing interest expenses.
- Strengthened financial position through the issuance of new notes.
- Offering may dilute existing shareholders' equity.
- Market conditions may impact the success of the offering.
HOUSTON, Aug. 3, 2020 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI) (the "Company"), an international, Fortune 500 automotive retailer, today announced that, subject to market conditions, it intends to offer for sale
The Notes to be offered have not been, and will not be, registered under the Securities Act, or any state securities laws, and thus, the Notes may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Notes are being offered to persons reasonably believed to be qualified institutional buyers in an offering exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and to non-U.S. persons outside of the United States in compliance with Regulation S under the Securities Act. This announcement shall not constitute an offer to sell or a solicitation of an offer to buy any of these Notes or any security, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful.
ABOUT GROUP 1 AUTOMOTIVE, INC.
The Company owns and operates 186 automotive dealerships, 242 franchises, and 49 collision centers in the United States, the United Kingdom and Brazil that offer 31 brands of automobiles. Through its dealerships, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service contracts; provides automotive maintenance and repair services; and sells vehicle parts.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements related to future, not past, events and are based on the Company's current expectations and assumptions regarding the Company's business, the economy and other future conditions. In this context, the forward-looking statements often include statements regarding the Company's strategic investments, goals, plans, projections and guidance regarding the Company's financial position, results of operations, business strategy, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," "foresee," "may" or "will" and similar expressions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Any such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) the Company's ability to obtain an inventory of desirable new and used vehicles, (e) the Company's relationship with the Company's automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) the Company's cost of financing and the availability of credit for consumers, (g) the Company's ability to complete acquisitions and dispositions and the risks associated therewith, (h) foreign exchange controls and currency fluctuations, (i) the Company's ability to retain key personnel, (j) the impacts of COVID-19 on the Company's business, (k) the impacts of any potential global recession and (l) the Company's ability to maintain sufficient liquidity to operate. For additional information regarding known material factors that could cause the Company's actual results to differ from the Company's projected results, please see the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
Investor contacts:
Sheila Roth
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com
Media contacts:
Pete DeLongchamps
Senior Vice President, Manufacturer Relations, Financial Services and Public Affairs
Group 1 Automotive, Inc.
713-647-5770 | pdelongchamps@group1auto.com
or
Clint Woods
Pierpont Communications, Inc.
713-627-2223 | cwoods@piercom.com
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SOURCE Group 1 Automotive, Inc.
FAQ
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