Lithia Announces Pricing of Public Offering of Common Stock
September 30 2020 - 10:46PM
Business Wire
Lithia Motors, Inc. (NYSE: LAD) today announced the pricing of
its public offering (the “Offering”) of 3,181,819 shares of its
Class A common stock (the “common stock”) at a price to the public
of $220.00 per share. In addition, the underwriters have been
granted a 30-day option to purchase up to an additional 477,272
shares of common stock at the same public offering price, less
underwriting discounts and commissions. The offering is expected to
close on October 5, 2020, subject to the satisfaction of customary
closing conditions.
In addition, today Lithia concurrently announced the pricing of
its private offering of $550 million aggregate principal amount of
its 4.375% senior notes due 2031 (the “Notes”), which represents an
increase of $50 million from the offering size previously
announced. This press release is neither an offer to sell nor a
solicitation of an offer to buy the Notes.
Goldman Sachs & Co. LLC and J.P. Morgan are acting as joint
lead book-running managers for the Offering. BofA Securities,
Citigroup and Morgan Stanley are acting as joint book-running
managers, and BTIG, Wells Fargo Securities, TD Securities, Truist
Securities and Capital One Securities are acting as co-managers in
the Offering.
A shelf registration statement relating to our common stock has
been filed with the Securities and Exchange Commission (the “SEC”)
and became automatically effective upon filing. The Offering is
being made only by means of a prospectus supplement and an
accompanying prospectus. A preliminary prospectus supplement
relating to and describing the terms of the Offering was filed with
the SEC on September 29, 2020 and is available on the SEC’s website
at www.sec.gov. Copies of these documents and the final prospectus
supplement, when available, may be obtained from: Goldman Sachs
& Co. LLC, 200 West Street, New York, New York 10282,
Attention: Prospectus Department, by telephone at (866) 471-2526,
or by email at prospectus-ny@ny.email.gs.com; or J.P. Morgan
Securities LLC, Attention: Broadridge Financial Solutions, 1155
Long Island Avenue, Edgewood, NY 11717, telephone: 1-866-803-9204,
or by email at prospectus-eq_fi@jpmchase.com.
This press release is neither an offer to sell nor a
solicitation of an offer to buy shares of our common stock or any
other securities and shall not constitute an offer to sell or a
solicitation of an offer to buy, or a sale of, shares of our common
stock 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 a growth company powered by people and
innovation with a 5-year plan to profitably consolidate the largest
retail sector in our country. They are a leading provider of
personal transportation solutions in the United States and are
among the fastest-growing companies in the Fortune 500 (#6 on
10-Year EPS Growth, #4 10-Year TSR in 2020). By providing a wide
array of products throughout the entire lifecycle of the consumer's
vehicle ownership experience, they build magnetic brand loyalty.
Operational excellence is achieved by focusing the business on
convenient and transparent consumer experiences supported by
proprietary data science to increase market share, consumer loyalty
and team performance. Lithia's omni-channel strategy will continue
to pragmatically disrupt the industry by leveraging experienced
teams, vast owned inventories, technology, and physical network. By
purchasing strong businesses, they further strengthen this network,
leveraging their national digital home channel Driveway and
building upon their massive regenerating capital engine. Together,
these endeavors create a unique and compelling high-growth strategy
that provides 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", "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 Offering and our concurrent private offering of the
Notes.
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 economic and financial conditions (both nationally and
locally), including as a result of the COVID-19 pandemic;
- 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);
- The adequacy of our cash flow and earnings and other conditions
which may affect our ability to pay our quarterly dividend at the
planned level;
- Disruptions to our technology network including computer
systems and software, as well as natural events such as severe
weather, fires, floods and earthquakes or man-made or other
disruptions of our operating systems, structures, facilities or
equipment; and
- Government regulations and legislation, and other 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, “Part II, Item 1A. Risk Factors” of our Quarterly Report
on Form 10-Q filed on July 24, 2020, 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. 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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version on businesswire.com: https://www.businesswire.com/news/home/20200930006038/en/
Eric Pitt Vice President, Investor Relations & Treasurer
Lithia Motors, Inc. epitt@lithia.com 541-864-1748
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