Lithia Motors amended its credit agreement to increase its existing facility by $300 million to $2.05 billion and extended the maturity to July 2021.
The amended agreement provides for up to $1.3 billion in new vehicle inventory floor plan financing, $350 million in used vehicle inventory floor plan financing and $400 million in revolving loan financing.
Lenders in the syndicated facility include seven manufacturer-affiliated finance companies — Mercedes-Benz Financial Services, Toyota Motor Credit, BMW Financial Services, American Honda Finance, Hyundai Capital America, Nissan Motor Acceptance and VW Credit — and six commercial banks — U.S. Bank, JPMorgan Chase, 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 served as administrative agent to the facility.
Chris Holzshu, SVP and CFO, said, “We appreciate the support of our 18 commercial lender partners to increase the capacity and extend the duration of our credit facility. The primary reason for the amendment is to provide new vehicle floor plan financing for future acquisitions. We believe it is an opportune time to secure incremental capacity to meet our robust growth objectives and our $9.00 earnings milestone.”