Group 1 Automotive Completes Redemption of All Outstanding 5.000% Senior Notes Due 2022
Group 1 Automotive, Inc. (NYSE: GPI) has completed the redemption of its 5.000% senior notes due 2022, funded by a $550 million offering of 4.000% senior notes due 2028 and cash reserves. This strategic move is expected to reduce annual interest expenses by approximately $5.5 million. The refinancing extends the debt maturity to 2028, demonstrating the company’s commitment to financial prudence. Group 1 operates 186 dealerships and is a leader in the automotive retail sector across the U.S., U.K., and Brazil.
- Redemption of 5.000% senior notes due 2022 improves financial stability.
- Lower annual interest expense by approximately $5.5 million.
- Extended debt maturity from 2022 to 2028 enhances cash flow management.
- None.
HOUSTON, Sept. 2, 2020 /PRNewswire/ -- Group 1 Automotive, Inc. (NYSE: GPI), ("Group 1" or the "Company"), an international, Fortune 500 automotive retailer, today announced that it has completed the redemption of all of its outstanding
The redemption was funded from the proceeds of the Company's recently completed offering of
"We are pleased that Group 1 has been able to materially lower future interest expense by refinancing the 2022 Notes with the proceeds from the 2028 Notes and cash on hand at a much lower interest rate," said Daniel McHenry, Group 1's senior vice president and chief financial officer. "This transaction also allows the Company to extend the debt maturity from 2022 to 2028. We are very appreciative of our bank partners who made this refinance possible."
ABOUT GROUP 1 AUTOMOTIVE, INC.
Group 1 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.
Investors please visit www.group1corp.com, www.group1auto.com, www.group1collision.com, www.facebook.com/group1auto, and www.twitter.com/group1auto, where Group 1 discloses additional information about the Company, its business, and its results of operations.
Investor contacts:
Sheila Roth
Manager, Investor Relations
Group 1 Automotive, Inc.
713-647-5741 | sroth@group1auto.com
Media contacts:
Pete DeLongchamps
Senior V.P. 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.
