DULUTH, Ga., July 26, 2016 /PRNewswire/ -- Asbury
Automotive Group, Inc. (NYSE: ABG), one of the largest
automotive retail and service companies in the U.S., today
announced that it has entered into a second amended and restated
$1.3 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 will remain at
one-month LIBOR plus 125 basis points and the used vehicle floor
plan interest will remain at one-month LIBOR plus 150 basis points.
Asbury's new senior credit facility provides for:
- a $250.0 million revolving credit
facility (the "Revolving Credit Facility"),
- a $900.0 million new vehicle
revolving floor plan facility (the "New Vehicle Floor Plan
Facility"), and
- a $150.0 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 August 2018 until July 2021.
"Our expanded $1.3 billion senior
credit facility provides additional financial flexibility to
support our business strategy over the next five years," said
Keith Style, Asbury's Senior Vice
President and CFO. "We want to thank our lending partners for their
continued support."
The syndication was arranged through Merrill Lynch, Pierce,
Fenner & Smith Incorporated. JPMorgan Chase Bank, N.A., and
Wells Fargo Bank 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 six
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,
Toyota Motor Credit Corporation, and Volkswagen Credit, Inc., and
it includes six commercial banks and other lending institutions
consisting of Bank of America, N.A., JPMorgan Chase Bank,
N.A., Mass Mutual Asset Finance LLC, SunTrust Bank, Inc.,
U.S. Bank National Association, and Wells Fargo Bank, N.A.
About Asbury Automotive Group, Inc.
Asbury Automotive Group, Inc. ("Asbury"), a Fortune 500 company
headquartered in Duluth, Georgia,
a suburb of Atlanta, is one of the
largest automotive retailers in the U.S. Built through a
combination of organic growth and a series of strategic
acquisitions, Asbury operates 82 dealership locations, encompassing
99 new vehicle franchises for the sale and servicing of 28 domestic
and foreign brands. In addition, we own and operate three
stand-alone used vehicle stores under the "Q auto" brand name in
Florida. We also operate 25 collision repair centers in
our local markets. 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 goals,
plans, market conditions and projections regarding Asbury's
financial position, liquidity, results of operations, market
position and dealership portfolio, 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 IT 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.
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SOURCE Asbury Automotive Group, Inc.