Lithia Motors, Inc. (NYSE:LAD) Files An 8-K Entry into a Material Definitive AgreementItem 1.01. Entry Into a Material Definitive Agreement
Effective June 25, 2018, Lithia Motors, Inc. (the “Company”), entered into a Second Amended and Restated Loan Agreement (the "Loan Agreement"), amending its Amended and Restated Loan Agreement (the “Existing Loan Agreement”) with U.S. Bank National Association as agent for the lenders, and U.S. Bank National Association; Ally Bank; American Honda Finance Corporation; Bank of America, N.A.; Bank of the West; BMO Harris Bank N.A.; BMW Financial Services NA, LLC; Branch Banking & Trust Company; Capital One, N.A.; Hyundai Capital America; JPMorgan Chase Bank, N.A.; Mercedes-Benz Financial Services USA LLC; M&T Bank; Nissan Motor Acceptance Corporation; PNC Bank, National Association; Santander Bank, N.A.; TDBank, N.A.; Toyota Motor Credit Corporation; VW Credit, Inc.; and Wells Fargo Bank, NA, as lenders. Prior to the Loan Agreement, the Existing Loan Agreement provided for a credit facility with an aggregate total financing commitment of $2.4 billion, which would have matured in August 2022. Among other changes from the Existing Loan Agreement, under the Loan Agreement the aggregate total financing commitment has been increased to $2.6 billion and the term of the credit facility has been extended to July 2023. Under the Loan Agreement as amended, the total commitment is allocated $50 million to used vehicle inventory floorplan financing, $450 million to revolving loans for acquisitions and other general corporate purposes, and the remaining $2.1 billion for new vehicle inventory floorplan financing. The Company has the option to reallocate the commitments, provided that the used vehicle inventory floorplan financing commitment does not exceed 16.5% of aggregate commitments, the revolving loan commitment does not exceed 18.75% of aggregate commitments, and the sum of these commitments plus the new vehicle inventory floorplan financing commitment does not exceed the aggregate total financing commitment of $2.6 billion. Additionally, the Company may request an increase in the aggregate new vehicle floor plan commitment of up to $400 million provided that the aggregate commitment does not exceed $3.0 billion. The interest rate on the credit facility varies based on the type of debt, with the rate of one-month LIBOR plus 1.25% for new vehicle floorplan financing, one-month LIBOR plus 1.50% for used vehicle floorplan financing and a variable interest rate on the revolving financing ranging from the one-month LIBOR plus 1.25% to 2.25% depending on the Company’s leverage ratio.
A copy of the Second Amended and Restated Loan Agreement is attached as Exhibit 10.1 and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
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Exhibit No. |
Description |
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10.1 |
Second Amended and Restated Loan Agreement dated June 25, 2018 |
LITHIA MOTORS INC ExhibitEX-10.1 2 lad20180625_ex-10.htm EXHIBIT 10.1 Exhibit Deal CUSIP 53679VAB62 New Vehicle Floorplan Facility CUSIP 53679VAD2Used Vehicle Floorplan Facility CUSIP 53679VAC4Revolving Line of Credit Facility CUSIP 53679VAB6SECOND AMENDED AND RESTATED LOAN AGREEMENTAmongLITHIA MOTORS,…To view the full exhibit click here
About Lithia Motors, Inc. (NYSE:LAD)
Lithia Motors, Inc. is an operator of automotive franchises and a retailer of new and used vehicles and services. The Company operates in three segments: Domestic, Import and Luxury. Its Domestic segment consists of retail automotive franchises that sell new vehicles of Chrysler, General Motors and Ford. Its Import segment consists of retail automotive franchises that sell new vehicles manufactured primarily by Honda, Toyota, Subaru, Nissan and Volkswagen. Its Luxury segment consists of retail automotive franchises that sell new vehicles of BMW, Mercedes-Benz and Lexus. Its franchises in each segment sell used vehicles, parts and automotive services, and automotive finance and insurance products. Its operations involve the use, handling, storage and contracting for recycling and disposal of materials, such as motor oil and filters, transmission fluids, antifreeze, refrigerants, paints, thinners, batteries, cleaning products, lubricants, degreasing agents, tires and fuel.
