Lithia & Driveway (LAD) Announces Upsizing And Pricing Of Senior Notes Offering
Lithia & Driveway (NYSE: LAD) has announced the pricing of its senior notes offering, which has been upsized by $100 million to $600 million. The notes will carry a 5.500% interest rate and are due in 2030.
The private offering is expected to close on September 10, 2025. The company plans to use the proceeds to repay a portion of its outstanding revolving lines of credit, with the possibility of reborrowing for general corporate purposes, including acquisitions and working capital.
The notes will be offered exclusively to qualified institutional buyers in the U.S. under Rule 144A and to international investors under Regulation S of the Securities Act.
Lithia & Driveway (NYSE: LAD) ha comunicato il prezzo della sua emissione di obbligazioni senior, aumentata di 100 milioni di dollari, portandola a 600 milioni. Le obbligazioni avranno un tasso di interesse del 5,500% e scadranno nel 2030.
L'offerta privata è prevista in chiusura il 10 settembre 2025. La società intende impiegare i proventi per rimborsare parte delle linee di credito revolving in essere, con la possibilità di rifinanziarsi per finalità societarie generali, incluse acquisizioni e capitale circolante.
Le note saranno offerte esclusivamente a investitori istituzionali qualificati negli Stati Uniti secondo la Rule 144A e a investitori internazionali ai sensi del Regulation S del Securities Act.
Lithia & Driveway (NYSE: LAD) ha anunciado la fijación del precio de su emisión de bonos senior, que se ha ampliado en 100 millones de dólares hasta 600 millones. Los bonos devengarán un interés del 5,500% y vencen en 2030.
Se espera que la colocación privada se cierre el 10 de septiembre de 2025. La compañía planea usar los fondos para pagar parte de sus líneas de crédito revolventes pendientes, con la posibilidad de volver a endeudarse para fines corporativos generales, incluidas adquisiciones y capital de trabajo.
Las notas se ofrecerán exclusivamente a compradores institucionales calificados en EE. UU. bajo la Regla 144A y a inversores internacionales conforme al Regulation S del Securities Act.
Lithia & Driveway (NYSE: LAD)는 선순위 채권 발행의 가격을 확정했으며, 발행 규모를 1억 달러 증액해 6억 달러로 늘렸다고 발표했습니다. 해당 채권의 표면이자는 5.500%이며 만기는 2030년입니다.
사모 발행은 2025년 9월 10일에 마감될 예정입니다. 회사는 자금을 일부 회전 신용대출 상환에 사용할 계획이며, 인수 및 운전자본을 포함한 일반 기업 목적을 위해 재차 차입할 가능성도 열어두고 있습니다.
이 채권은 미국 내 자격 있는 기관투자가(QIB)에게는 Rule 144A에 따라, 해외 투자자에게는 Securities Act의 Regulation S에 따라 전용으로 제공됩니다.
Lithia & Driveway (NYSE: LAD) a annoncé la tarification de son émission d'obligations senior, portée à la hausse de 100 millions de dollars pour atteindre 600 millions. Les titres porteront un taux d'intérêt de 5,500% et arriveront à échéance en 2030.
Le placement privé devrait se clore le 10 septembre 2025. La société prévoit d'utiliser les produits pour rembourser une partie de ses lignes de crédit renouvelables en cours, avec la possibilité de se refinancer pour des besoins généraux de l'entreprise, y compris des acquisitions et le fonds de roulement.
Les obligations seront offertes exclusivement à des acheteurs institutionnels qualifiés aux États-Unis selon la Rule 144A et à des investisseurs internationaux en vertu du Regulation S du Securities Act.
Lithia & Driveway (NYSE: LAD) hat die Preisfestsetzung für seine Senior-Notes-Emission bekanntgegeben, die um 100 Millionen US-Dollar auf 600 Millionen aufgestockt wurde. Die Papiere weisen einen Zinssatz von 5,500% auf und laufen bis 2030.
Die Privatplatzierung soll am 10. September 2025 abgeschlossen werden. Das Unternehmen plant, den Erlös zur Rückzahlung eines Teils seiner ausstehenden revolvierenden Kreditlinien zu verwenden, mit der Möglichkeit, für allgemeine Unternehmenszwecke – einschließlich Übernahmen und Betriebskapital – erneut Mittel aufzunehmen.
Die Notes werden ausschließlich qualifizierten institutionellen Käufern in den USA nach Rule 144A sowie internationalen Investoren gemäß Regulation S des Securities Act angeboten.
- Successful upsizing of notes offering by $100 million to $600 million total
- Proceeds will provide financial flexibility by paying down revolving credit lines
- Ability to reborrow funds for strategic acquisitions and working capital
- Additional long-term debt with 5.500% interest rate increases financial obligations
- Potential increase in interest expenses could impact future cash flows
Insights
LAD successfully upsized its debt offering by $100M, indicating strong investor demand while restructuring its debt profile.
Lithia & Driveway has priced $600 million in senior notes at a 5.500% interest rate due in 2030, representing a $100 million increase from their previously announced offering size. This upsizing suggests strong institutional investor demand for the company's debt, which is a positive signal regarding market confidence in LAD's creditworthiness.
The company intends to use these proceeds to repay a portion of its revolving credit lines, effectively refinancing short-term debt with longer-term financing. This strategic debt restructuring extends LAD's debt maturity profile to 2030, potentially reducing near-term refinancing pressure and improving financial flexibility. The ability to reborrow these amounts provides LAD with enhanced liquidity for future acquisitions and working capital needs.
The 5.500% interest rate indicates relatively favorable financing terms in the current rate environment, though not exceptionally low by historical standards. The private placement approach through Rule 144A and Regulation S exemptions is typical for corporate debt issuances, allowing the company to avoid some of the regulatory burdens of a public offering while still accessing institutional capital.
This debt management strategy aligns with LAD's active acquisition-based growth model in the auto dealership sector, ensuring they maintain financial flexibility to continue their expansion strategy while managing their overall leverage position.
The Private Offering is exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The Notes will be offered and sold only to persons reasonably believed to be qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act and outside the United States pursuant to Regulation S under the Securities Act. The Notes have not been, and will not be, registered under the Securities Act, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the rules promulgated thereunder.
This press release is being issued pursuant to Rule 135c under the Securities Act, and is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE: LAD) is the largest global automotive retailer providing a wide array of products and services throughout the vehicle ownership lifecycle. Simple, convenient, and transparent experiences are offered through our comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. We deliver consistent, profitable growth in a massive and unconsolidated industry. Our highly diversified and competitively differentiated design provides us the flexibility and scale to pursue our vision to modernize personal transportation solutions wherever, whenever and however consumers desire.
Forward-Looking Statements
Certain statements in this press release, and at times made by our officers and representatives, constitute forward-looking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Generally, you can identify forward-looking statements by terms such as "project", "outlook", "target", "may", "will", "would", "should", "seek", "expect", "plan", "intend", "forecast", "anticipate", "believe", "estimate", "predict", "potential", "likely", "ensure," "goal", "strategy", "future", "maintain", and "continue" or the negative of these terms or other comparable terms. Examples of forward-looking statements in this press release include, among others, statements regarding the Private Offering.
Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements in this press release. Therefore, you should not rely on any of these forward-looking statements. The risks and uncertainties that could cause actual results to differ materially from estimated or projected results include, without limitation:
- Future national and local economic and financial conditions, including as a result of inflation, governmental programs and spending, and public health issues;
- The market for dealerships, including the availability of stores to us for an acceptable price;
- Changes in customer demand and the electric vehicle landscape and the impact of evolving digital technologies;
- Changes in our relationship with, and the financial and operational stability of, OEMs and other suppliers, and vehicle delivery models;
- Changes in the competitive landscape, including through technology and our ability to deliver new products, services and customer experiences and a portfolio of in-demand and available vehicles;
- Risks associated with our indebtedness, including available borrowing capacity, interest rates, compliance with financial covenants and ability to refinance or repay indebtedness on favorable terms;
- The adequacy of our cash flows and other conditions which may affect our ability to fund capital expenditures, obtain favorable financing and pay our quarterly dividend at planned levels;
- Disruptions to our technology network including computer systems, as well as natural events such as severe weather or man-made or other disruptions of our operating systems, facilities or equipment;
- Government regulations and legislation; and
- The risks set forth throughout "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and in "Part I, Item 1A. Risk Factors" of our most recent Annual Report on Form 10-K, and in "Part II, Item 1A. Risk Factors" of our Quarterly Reports on Form 10-Q, and from time to time in our other filings with the SEC.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by law, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
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SOURCE Lithia Motors, Inc.
FAQ
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