Group 1 Automotive raises $1.25B in senior debt ahead of Hennessy dealership acquisition

Group 1 Automotive Inc. (NYSE: GPI) priced a $1.25 billion senior notes offering on September 8, 2026, structured as $625 million in 6.250% senior unsecured notes maturing in 2032 and $625 million in 6.625% notes maturing in 2035. The securities were sold to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S, without registration under the Securities Act of 1933. The deal closed on September 22, 2026, pending customary conditions. The proceeds, combined with existing cash, will fund the acquisition of dealership assets and related real estate from Hennessy Automobile Companies Inc. and affiliates, valued at approximately $1.25 billion. The company expects to use the net proceeds to repay portions of its revolving credit facility ahead of the acquisition closing, which is contingent on completion by January 6, 2027. If the deal fails to close by that date or under certain termination conditions, Group 1 Automotive must redeem the 2032 notes at 100% of their issue price plus accrued interest. The offering supports the company’s expansion of its 249 U.S. and U.K. dealerships, 310 franchises, and 32 collision centers.