Autosports Group Secures $350M Revolving Credit to Accelerate Growth
Autosports Group has inked a $350 million syndicated revolving credit facility, streamlining its capital structure and boosting financial flexibility to support future expansion.
- New $350 million syndicated revolving credit facility agreement
- Replaces existing term loans with revolving credit, eliminating $25.2 million principal amortisation
- Facilities secured by group assets, maturing in 3 and 5 years
- Reduced interest margins increase cash flow and funding headroom
- Financiers include Commonwealth Bank, Westpac, BMW Australia Finance, and Mercedes-Benz Financial Services
A Strategic Financial Reshape
Autosports Group Limited (ASX – ASG), a key player in automotive retail financing, has taken a decisive step to simplify and strengthen its financial foundation. On 3 June 2025, the company announced it has entered into a $350 million syndicated revolving credit facility agreement with its existing financiers, including Commonwealth Bank of Australia, Westpac Banking Corporation, BMW Australia Finance Limited, and Mercedes-Benz Financial Services Australia.
This new facility replaces the group’s previous term loan arrangements, shifting to revolving credit lines that eliminate the need for approximately $25.2 million in principal amortisation. This move is designed to provide long-term funding certainty and greater flexibility, enabling Autosports Group to better manage cash flow and pursue growth initiatives without the pressure of scheduled principal repayments.
Facility Structure and Terms
The syndicated facility comprises three revolving credit lines – two facilities totaling $250 million with a three-year maturity, and a third facility of $100 million maturing in five years. These facilities are secured by substantially all assets of Autosports Group and its subsidiaries, reflecting the lenders’ confidence in the company’s asset base and operational prospects.
By reducing the interest rate margin, the new agreement not only lowers financing costs but also enhances the group’s available cash flow and funding headroom. This financial flexibility is critical as Autosports Group looks to capitalize on market opportunities and potentially expand its footprint in the automotive retail sector.
Implications for Growth and Stability
Autosports Group’s CEO, Nick Pagent, emphasized that the facility agreement is a strategic move to reshape the balance sheet and support future growth initiatives. The simplification of the capital structure and the elimination of amortisation obligations free up resources that can be redirected towards operational expansion and innovation.
Financial close is anticipated around mid-June 2025, subject to customary conditions precedent. Once finalized, this facility is expected to underpin Autosports Group’s financial stability and provide a robust platform for navigating the evolving automotive retail landscape.
Investors and market watchers will be keen to observe how this enhanced financial flexibility translates into tangible growth and whether the company will leverage this facility to pursue acquisitions or new ventures.
Bottom Line?
Autosports Group’s new $350 million facility marks a pivotal step toward agile growth and financial resilience.
Questions in the middle?
- How will Autosports Group deploy the increased cash flow from reduced amortisation?
- What impact will the new facility have on the company’s credit ratings and borrowing costs?
- Will the group pursue acquisitions or new market entries funded by this facility?
