The offering consisted of $625 million in 6.250% notes due in 2032 and an additional $625 million in 6.625% notes maturing in 2035. According to the company, proceeds from the sale will cover the purchase price of the Hennessy transaction, with any remaining funds directed toward transaction fees and general corporate obligations. Until the acquisition closes, Group 1 intends to use the capital to pay down existing debt under its revolving credit facility.
Group 1 Automotive Secures $1.25 Billion for Hennessy Dealership Buyout
Houston-based automotive retailer Group 1 Automotive has completed a $1.25 billion private placement of senior unsecured notes. The company plans to deploy the capital, split equally between 2032 and 2035 maturity dates, to finance its acquisition of dealership assets from Hennessy Automobile Companies.
Daniel McHenry, Chief Financial Officer and CEO of UK Operations, noted that the financing provides the company with long-term capital on competitive terms. Should the Hennessy deal fail to close by early 2027, the company is contractually obligated to trigger a special mandatory redemption, returning the initial issue price plus accrued interest to noteholders. The notes were sold exclusively to qualified institutional buyers and non-U.S. persons, remaining unregistered under the Securities Act.
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