Group 1 Automotive, Inc. GPI announced that it completed a $1.8-billion revolving syndicated credit facility. This five-year credit facility, with 23 financial institutions, can be expanded to $2.1 billion. The 23 lenders include 19 commercial banks and 4 manufacturer-affiliated finance companies.
Group 1 Automotive is one of the leading automotive retailers in the world. The company operates 233 franchises, representing 30 automobile brands through 181 dealerships and 47 collision service centers worldwide. The extension of the credit facility strengthens the company’s balance sheet, and provides sufficient and reasonably priced capital for vehicle financing and acquisition growth over the next five years.
Out of the total facility, $1.44 billion will be provided for inventory floor plan financing. Additionally, $360 million will be for acquisition, working capital and general corporate requirements. Out of $360 million, $125 million can be borrowed in either euro or pound sterling.
Over the past year, shares of Group 1 Automotive have outperformed the industry it belongs to. During this time frame, shares of the company have rallied 27.3% while the industry grew 0.3%.
Zacks Rank & Stocks to Consider
Group 1 Automotive currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space are Ford Motor Company F, Fox Factory Holding Corp. FOXF and Cummins Inc. CMI, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ford has an expected long-term growth rate of 7.3%. Over the past six months, shares of the company have gained 33.3%.
Fox Factory has an expected long-term growth rate of 16.4%. Over the past six months, shares of the company have gained 38.5%.
Cummins has an expected long-term growth rate of 8%. Over the past six months, shares of the company have gained 25.9%.
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