Auto dealership chain Asbury Automotive Group Inc. said Monday it has reached a deal with nine banks and five automaker-affiliated finance companies for a $900 million credit line.
The Duluth, Ga., company said it will use up to $625 million to finance the new-car inventory for its 80 U.S. dealerships. An additional $100 million would go for used-car financing and other purposes, and $175 million for general corporate purposes. The credit line, which matures in October of 2016, can be expanded to a total of $1.175 billion, the company said.
"This new credit facility provides the operational and strategic flexibility we will need for the next five years," Chief Financial Officer Scott Krenz said in a statement.
The credit line was arranged through Bank of America Merrill Lynch. The five automaker-affiliated finance companies involved are American Honda Finance Corp., BMW Group Financial Services NA LLC, Mercedes-Benz Financial Services USA LLC, Nissan Motor Acceptance Corp., and Toyota Motor Credit Corp.
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Financial institutions loaning money are B of A Merrill Lynch, Bank of the West, Comerica Bank, Deutsche Bank Trust Co. Americas, Flagstar Bank, JPMorgan Chase Bank, Mass Mutual Asset Finance LLC, U.S. Bank and Wells Fargo Bank.
Shares of Asbury rose 9 cents to $19.39 in late-morning trading Monday.