Daily News: December 19, 2013

U.S. Bank, JPMorgan Others Provide $1B Lithia Motors Revolver

Lithia Motors announced that it completed a $1 billion five-year revolving syndicated credit facility with 13 institutions that will expire in December 2018. The facility can be expanded to $1.25 billion in total availability.

Lenders in the syndicated facility included: U.S. Bank, JPMorgan Chase Bank, Bank of America, Bank of the West, Key Bank, and TD Bank. U.S. Bank and JPMorgan Chase were joint bookrunners for the syndication and U.S. Bank serves as administrative agent to the facility.

Seven manufacturer-affiliated finance companies in the facility included: Mercedes-Benz Financial Services, Toyota Motor Credit, BMW Financial Services, American Honda Finance, Hyundai Capital America, Nissan Motor Acceptance and VW Credit.

The revolving facility will provide $700 million for new vehicle inventory floorplan financing, $150 million for used vehicle inventory floorplan financing and $150 million for general corporate purposes including working capital and acquisitions.

Under the terms of the new agreement, pretax interest expense will be reduced by approximately $350,000 per quarter, based on current borrowing levels, Lithia said.

Chris Holzshu, SVP and CFO, said, “The Lithia team would like to thank all of the participants for their support in completing the syndication. The new revolving facility expands our existing partnership with these banks and manufacturer-affiliated finance companies and is a testament to our deep and meaningful relationship with them.”

Lithia Motors is the ninth largest automotive retailer in the U.S.