Group 1 Automotive Enters $190.3M Real Estate Term Loan

What Happened Group 1 Automotive, through its subsidiary Group 1 Realty, Inc., entered into a master Credit Agreement with Bank of America, N.A., effective September 23, 2026, providing a term loan with a maximum principal of $190,336,250. The loan (evidenced by a Term Note with a draw period) equals 85% of the appraised value of the mortgaged properties and is secured by mortgages on those properties, related fixtures/improvements and proceeds. The Company and certain subsidiary guarantors guarantee the obligations. Interest accrues at Term SOFR plus 145 basis points and the loan matures on September 23, 2033. Once repaid, borrowed principal may not be reborrowed.

Key Details

• Loan amount: up to $190,336,250 (equal to 85% of appraised value of the pledged properties).
• Interest: Term SOFR + 145 basis points (floating rate).
• Maturity: September 23, 2033; evidenced by a Term Note with a draw period.
• Collateral & guarantees: mortgages on Properties, security interests in fixtures/improvements, guaranteed by Group 1 Automotive and certain subsidiaries; borrower may add additional properties as collateral per the agreement.
• Covenants & defaults: agreement limits additional liens or secured debt on the Properties, dispositions, certain loans/advances and mergers; contains Events of Default including non-payment and cross-defaults to certain other material indebtedness that could trigger acceleration.

Why It Matters This filing (Item 1.01 and Item 2.03) establishes a material, secured financing arrangement backed by real estate assets and guaranteed by the parent company. For investors, it provides clarity that Group 1 has obtained long-term secured liquidity tied to property collateral, but it also imposes restrictions on the company’s and guarantors’ ability to encumber or dispose of those properties and includes default provisions that could accelerate repayment. The floating interest rate links cost to market SOFR movements, and the guarantee by the parent makes the loan a corporate-level obligation to consider when assessing Group 1’s consolidated credit exposure.