Item 1.01 Entry into a Material Definitive Agreement.

Indenture

On August 17, 2020, Group 1 Automotive, Inc. (the "Company") completed its private placement (the "Offering") of $550,000,000 aggregate principal amount of its 4.000% Senior Notes due 2028 (the "Notes") to J.P. Morgan Securities LLC and the other initial purchasers (the "Initial Purchasers"). The Notes are guaranteed on a senior unsecured basis (the "Guarantees") by certain of the Company's subsidiaries (collectively, the "Guarantors"). The terms of the Notes are governed by the indenture dated as of August 17, 2020 (the "Indenture"), by and among the Company, the Guarantors and Wells Fargo Bank, National Association, as trustee (the "Trustee").

The Notes will mature on August 15, 2028, and interest is payable on the Notes on each February 15 and August 15, commencing on February 15, 2021. The Company may redeem up to 40% of the original principal amount of the Notes using the proceeds of certain equity offerings completed on or before August 15, 2023 at a redemption price of 104.000% of the principal amount of the Notes, together with accrued and unpaid interest, if any, to, but excluding, the date of redemption, provided that:





    (i)  at least 60% of the aggregate principal amount of all Notes issued
         remains outstanding after each such redemption; and




    (ii) the redemption occurs within 120 days of the date of the closing of such
         equity offering.

Prior to August 15, 2023, the Company may redeem all or a part of the Notes at a redemption price equal to 100% of the principal amount of the Notes redeemed plus an applicable make-whole premium as of, and accrued and unpaid interest, if any, on the Notes redeemed to, the applicable date of redemption.

On or after August 15, 2023, the Company may on any one or more occasions redeem all or a part of the Notes at the following redemption prices (expressed as percentages of the principal amount) plus accrued and unpaid interest, if any, on the Notes redeemed, to, but excluding, the applicable redemption date, if redeemed during the 12-month period beginning on August 15 of the years indicated:





Year                   Percentage
2023                       102.000 %
2024                       101.333 %
2025                       100.667 %
2026 and thereafter        100.000 %

Upon the occurrence of a Change of Control (as defined in the Indenture), the Company will be required to make an offer to purchase all outstanding Notes at a purchase price equal to 101% of their principal amount plus accrued and unpaid interest, if any, to, but excluding, the repurchase date.

The Notes are the Company's senior unsecured obligations and will rank: (i) equal in right of payment with all existing and future senior unsecured indebtedness of the Company; (ii) effectively subordinated to all existing and future senior secured debt of the Company to the extent of the value of the assets securing such debt; (iii) senior in right of payment to all existing and future subordinated indebtedness of the Company; and (iv) structurally subordinated to all existing and future liabilities (including trade payables) of any non-guarantor subsidiaries. The Note Guarantees will rank equally in right of payment with all of the Guarantor's existing and future senior indebtedness and senior in right of payment to all of the Guarantor's existing and future subordinated indebtedness.

The Indenture limits the Company's ability and the ability of its Restricted Subsidiaries (as defined in the Indenture) to: (i) incur additional indebtedness and guarantee indebtedness; (ii) pay dividends or make other distributions or repurchase or redeem the Company's capital stock; (iii) prepay, redeem or repurchase certain debt; (iv) issue certain preferred stock or similar equity securities; (v) make loans and investments; (vi) sell assets; (vii) incur liens; (viii) enter into transactions with affiliates; (ix) enter into agreements restricting the Company's subsidiaries' ability to pay dividends; and (x) consolidate, merge or sell substantially all of the Company's assets. These covenants are subject to a number of important exceptions and qualifications. Certain covenants will be





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suspended and will not apply to the Notes if for such period of time, if any, that the Notes have investment grade ratings from either S&P Global Ratings or Moody's Investors Service, Inc. and no default or event of default shall have occurred and be continuing at the time of suspension.

The Indenture contains customary events of default, including:

• failure to pay principal of (or premium, if any, on) any Note when due


          and payable, at maturity, upon redemption or otherwise;

• failure to pay any interest on any Note when due and payable and such


          default continues for 30 days;

• default in the payment of principal and interest on Notes required to be


          purchased pursuant to an offer to purchase when due and payable;

• failure by the Company to comply with its obligations under the


          Indenture, in certain cases subject to notice and grace periods;

• payment defaults and accelerations with respect to other indebtedness of


          the Company and its Restricted Subsidiaries in the aggregate principal
          amount of $50.0 million or more;

• failure by the Company or any Restricted Subsidiary to pay certain final


          judgments aggregating in excess of $50.0 million within 60 days;

• certain events of bankruptcy, insolvency or reorganization of the Company


          or a Significant Restricted Subsidiary (as defined in the Indenture) or
          group of Restricted Subsidiaries that, taken together, would constitute a
          Significant Restricted Subsidiary; and

• any Guarantee of the Notes by a Guarantor ceases to be in full force and

effect, is declared unenforceable or invalid in a judicial proceeding or

is denied or disaffirmed by its maker.

A copy of the Indenture is filed as Exhibit 4.1 to this Form 8-K and is incorporated herein by reference. The description of the Indenture is a summary and is qualified in its entirety by the terms of the Indenture.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an

Off-Balance Sheet Arrangement of a Registrant.

The information included in Item 1.01 of this Form 8-K is incorporated by reference into this Item 2.03 of this Form 8-K.

Item 9.01 Financial Statements and Exhibits.




(d)  Exhibits.



Exhibit
  No.                                     Description

4.1            Indenture, dated as of August 17, 2020, by and among Group 1
             Automotive, Inc., the guarantors party thereto and Wells Fargo Bank,
             National Association, as trustee.

4.2            Form of 4.000% Senior Notes due 2028 (included as Exhibit A to
             Exhibit 4.1).

104          Cover Page Interactive Data File (embedded within the Inline XBRL
             document)




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