Lithia Announces Pricing of Senior Notes Offering
July 17 2017 - 4:47PM
Business Wire
Lithia Motors, Inc. (NYSE: LAD) today announced the pricing of
its previously announced $300 million in aggregate principal amount
of its 5.25% senior notes due 2025 (the “Notes”) in a private
offering (the “Private Offering”) that is exempt from the
registration requirements of the Securities Act of 1933, as amended
(the “Securities Act”). The Private Offering is expected to close
on July 24, 2017, subject to customary closing conditions.
Lithia intends to use the net proceeds of the Private Offering
for general corporate purposes, which may include funding
acquisitions, capital expenditures and debt repayment. Pending
final application, all or a portion of the net proceeds of the
Private Offering will be applied to reduce indebtedness, including
under Lithia's used vehicle floor plan and revolving credit
facilities.
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
Lithia Motors, Inc. is one of the largest automotive retailers
in the United States and is among the fastest growing companies in
the Fortune 500. Lithia sells 30 brands of new vehicles and all
brands of used vehicles at 160 stores in 18 states. Lithia also
arranges finance, warranty, and credit insurance contracts. In
addition, Lithia provides vehicle parts, maintenance and repair
services at all of its locations.
Forward-Looking Statements
This press release includes "forward-looking statements" within
the meaning of the "Safe-Harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Forward looking
statements include statements regarding our goals, plans,
projections and guidance regarding our financial position, results
of operations, market position, pending and potential future
acquisitions and business strategy, and often contain words such as
"project," "outlook," "expect," "anticipate," "intend," "plan,"
"believe," "estimate," "may," "seek," "would," "should," "likely,"
"goal," "strategy," "future," "maintain," "continue," "remain,"
"target" or "will" and similar references to future periods.
By their nature, forward-looking statements involve risks and
uncertainties because they relate to events that depend on
circumstances that may or may not occur in the future.
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. The risks and
uncertainties that could cause actual results to differ materially
from estimated or projected results include, without limitation,
future economic and financial conditions (both nationally and
locally), changes in customer demand, our relationship with, and
the financial and operational stability of, vehicle manufacturers
and other suppliers, risks associated with our indebtedness
(including available borrowing capacity, compliance with financial
covenants and ability to refinance or repay indebtedness on
favorable terms), government regulations, legislation and others
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 from time to time in our other filings with the SEC.
We urge you to carefully consider this information and not place
undue reliance on forward-looking statements. We undertake no duty
to update our forward-looking statements, including our earnings
outlook, which are made as of the date of this press release.
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version on businesswire.com: http://www.businesswire.com/news/home/20170717006222/en/
Lithia Motors, Inc.John North, 541-618-5748Senior Vice President
and Chief Financial Officer
Lithia Motors (NYSE:LAD)
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