Add
GPI to Portfolio
Set Alert
Email to a
Friend
| |||
|
|
Quotes & Info
|
| GPI > SEC Filings for GPI > Form 8-K on 22-Jun-2009 | All Recent SEC Filings |
22-Jun-2009
Entry into a Material Definitive Agreement, Creation of a Direct Financial
On June 22, 2009, Group 1 Automotive, Inc. (the "Company") announced that it voluntarily reduced the borrowing capacity under its credit arrangement with Ford Motor Credit Company (the "FMCC Facility") from $300 million to $150 million in vehicle inventory financing. There were no changes to the terms or pricing of the FMCC Facility, which provides financing for our new vehicle inventory manufactured by Ford Motor Company and its affiliates. The terms of the FMCC Facility are subject to review annually.
All of our Ford and Lincoln Mercury dealership subsidiaries are obligors under the FMCC Facility. The Company and each of our Ford and Lincoln Mercury dealership subsidiaries guarantees the obligations of each other subsidiary party thereto. Our obligations under the FMCC Facility are secured by liens on all motor vehicle inventory financed under the FMCC Facility, as well as proceeds from the sale thereof. The FMCC Facility also contains events of default, including non-payment of obligations. The individual loan agreements to which each subsidiary borrower is a party are cross-defaulted to each other and our Revolving Credit Facility. Upon the occurrence of an event of default, we could be required to immediately repay the amount outstanding under the FMCC Facility.
A copy of the press release is attached as Exhibit 99.1 to this Current Report.
The information provided in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.
99.1 Press Release of Group 1 Automotive, Inc., dated as of June 22, 2009.
|
|