Lithia Motors enters into five-year $254.7 million revolver

By Wendy Van Sickle

Columbus, Ohio, July 16 – Lithia Motors Inc. entered into a credit agreement with Wells Fargo Bank, NA, as administrative agent on Tuesday providing for a five-year $254.7 million revolver, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement is secured by real estate and other assets owned by the company and some direct and indirect subsidiaries.

Proceeds are available for working capital financing for general corporate purposes, including acquisitions and working capital.

Borrowings bear interest at one-month Libor plus a margin ranging from 200 basis points to 250 bps, based on the company’s leverage ratio.

Wells Fargo and U.S. Bank NA are the joint lead arrangers and bookrunners. U.S. Bank is the syndication agent. Toyota Motor Credit Corp. and Truist Bank are the co-documentation agents.

Financial covenants include requirements to maintain minimum current and fixed charge coverage ratios, and a maximum leverage ratio, consistent with those under the company’s existing syndicated credit facility with U.S. Bank NA as administrative agent.

Lithia Motors is a Medford, Ore.-based automotive retailer.

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