Group 1 Automotive prices $1.25B senior notes to fund Hennessy deal

Group 1 Automotive, Inc. (NYSE: GPI) has priced a private placement of $1.25 billion in senior unsecured notes, according to a press release from the Houston-based automotive retailer.

The offering consists of two tranches: $625.0 million of 6.250% senior unsecured notes due 2032 and $625.0 million of 6.625% senior unsecured notes due 2035. The offering is expected to close on September 22, 2026, subject to customary closing conditions.

The company intends to use the net proceeds, along with cash on hand, to fund its previously announced acquisition of dealership assets and related real estate from Hennessy Automobile Companies, Inc. and certain of its affiliates. Pending the closing of the Hennessy acquisition, the company plans to use the proceeds to repay a portion of outstanding borrowings under its revolving credit facility, which it expects to reborrow at closing.

If the Hennessy acquisition is not completed by January 6, 2027, or upon certain other triggering events, Group 1 will be required to redeem all outstanding 2032 Notes at 100% of the initial issue price, plus any accrued and unpaid interest.

The notes were offered to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S, and have not been registered under the Securities Act of 1933.

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