Lithia Motors Raises $46m Through Public Issue
For general corporate purposes, including working capital and potential acquisitions
Lithia Motors has reported that the company raised $46m through its previously announced underwritten public offering by issuing 4,600,000 shares of the company’s Class A Common Stock, including 600,000 shares pursuant to the underwriters’ over-allotment option, at a price of $10.00 per share. The net proceeds and estimated offering expenses are expected to be approximately $43.2m.
The company plans to use the net proceeds of the offering for general corporate purposes, including working capital and potential acquisitions.
Prior to such use, the company expects to use the net proceeds of the offering to pay down amounts outstanding under its revolving credit facility and one or more of its flooring lines of credit, which can be re-accessed when cash is needed for other purposes.
The company said that JP Morgan Securities acted as the sole bookrunner for the offering and Stephens acted as a co-manager. The offering was made solely by means of a prospectus supplement and accompanying prospectus.
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