DULUTH, Ga., Sept. 25, 2019 /PRNewswire/ -- Asbury
Automotive Group, Inc. (NYSE: ABG), one of the largest automotive
retail and service companies today announced that it has entered
into a third amended and restated $1.45
billion, five-year syndicated senior credit facility.
Asbury's new senior credit facility replaces the Company's
previously amended and restated facility, and provides additional
borrowing availability, increased financial flexibility, and an
extended maturity date as compared to the prior facility. The new
vehicle floor plan interest rate is reduced to one-month LIBOR plus
110 basis points and the used vehicle floor plan interest is
reduced to one-month LIBOR plus 140 basis points (for LIBOR loans).
The interest rate for the revolving credit facility will bear
interest in a range of LIBOR plus 100 basis points to LIBOR plus
200 basis points (for LIBOR loans), based on the Company's
consolidated lease adjusted leverage ratio. Asbury's new
senior credit facility provides for:
- a $250.0 million revolving credit
facility (the "Revolving Credit Facility"),
- a $1,040.0 million new vehicle
revolving floor plan facility (the "New Vehicle Floor Plan
Facility"), and
- a $160.0 million used vehicle
revolving floor plan facility (the "Used Vehicle Floor Plan
Facility").
The new senior credit facility also provides for the expansion
of the availability thereunder, subject to certain conditions, up
to a total availability of $1.625
billion. Additionally, the maturity date was extended
from July 2021 to September 2024.
"This new $1.45 billion senior
credit facility provides additional financial flexibility to
support our business strategy over the next five years." said
Sean Goodman, Asbury's Senior Vice
President and CFO. "We want to thank our lending partners for their
continued support."
The syndication was arranged through BOFA Securities, Inc.
JPMorgan Chase Bank, N.A., and Wells Fargo Bank, National
Association served as co-syndication agents. Mercedes-Benz
Financial Services USA LLC and
Toyota Motor Credit Corporation served as co-documentation agents.
Bank of America, N.A. will serve as administrative agent. Lenders
in the new syndicated credit facilities include five
manufacturer-affiliated finance companies consisting of American
Honda Finance Corporation, BMW Group Financial Services NA, LLC,
Mercedes-Benz Financial Services USA LLC, Nissan Motor Acceptance Corporation,
and Toyota Motor Credit Corporation, and it includes eight
commercial banks and other lending institutions consisting of Bank
of America, N.A., Branch Banking & Trust Company, JPMorgan
Chase Bank, N.A., Mass Mutual Asset Finance LLC, Santander Bank, N.A., SunTrust Bank, U.S. Bank
National Association, and Wells Fargo Bank, National
Association.
About Asbury Automotive Group, Inc.
Asbury Automotive Group, Inc. ("Asbury"), a Fortune 500 company
headquartered in Duluth, GA, is
one of the largest automotive retailers in the U.S. Asbury
currently operates 87 dealerships, consisting of 106 franchises,
representing 30 domestic and foreign brands of vehicles.
Asbury also operates 25 collision repair centers. Asbury
offers customers an extensive range of automotive products and
services, including new and used vehicle sales and related
financing and insurance, vehicle maintenance and repair services,
replacement parts and service contracts.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are statements other than
historical fact, and may include statements relating to the new
senior secured credit facility, future financial flexibility and
other initiatives and future business strategy. These
statements are based on management's current expectations and
beliefs and involve significant risks and uncertainties that may
cause results to differ materially from those set forth in the
statements. These risks and uncertainties include, among
other things, market factors, Asbury's relationships with, and the
financial and operational stability of, vehicle manufacturers and
other suppliers, acts of God or other incidents which may adversely
impact supply from vehicle manufacturers and/or present retail
sales challenges, risks associated with Asbury's indebtedness
(including available borrowing capacity, compliance with its
financial covenants and ability to refinance or repay such
indebtedness, on favorable terms), Asbury's relationships with, and
the financial stability of, its lenders and lessors, risks related
to competition in the automotive retail and service industries,
general economic conditions both nationally and locally,
governmental regulations, legislation, adverse results in
litigation and other proceedings, and Asbury's ability to execute
its digital initiatives and other operational strategies, Asbury's
ability to leverage gains from its dealership portfolio, Asbury's
ability to capitalize on opportunities to repurchase its debt and
equity securities or purchase properties that it currently leases,
and Asbury's ability to stay within its targeted range for capital
expenditures. There can be no guarantees that Asbury's plans
for future operations will be successfully implemented or that they
will prove to be commercially successful.
These and other risk factors that could cause actual results to
differ materially from those expressed or implied in our
forward-looking statements are and will be discussed in Asbury's
filings with the U.S. Securities and Exchange Commission from time
to time, including its most recent annual report on Form 10-K and
any subsequently filed quarterly reports on Form 10-Q. We
undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events or
otherwise.
View original
content:http://www.prnewswire.com/news-releases/asbury-automotive-group-announces-amended-and-restated-1-45-billion-senior-credit-facility-300925603.html
SOURCE Asbury Automotive Group, Inc.