Lithia & Driveway (NYSE: LAD) announced the pricing of $600 million in aggregate principal amount of its 5.500% senior notes due 2030 in a private offering.
The offering size was increased by $100 million from the initial announcement.
The proceeds will be used to repay a portion of the outstanding borrowings under its revolving lines of credit.
Offering Size Increase
The senior notes offering was upsized by $100 million from the initial amount.
Private Offering Details
The offering consists of $600 million in aggregate principal amount of 5.500% senior notes due 2030.
Intended Use of Proceeds
The net proceeds will be used to repay a portion of current borrowings under revolving credit lines.
- The Private Offering is expected to provide additional capital for Lithia & Driveway's corporate operations and potential acquisitions.
- Repaying existing borrowings could enhance the company's financial flexibility and reduce interest expenses.
Lithia & Driveway's announcement of the senior notes offering signifies a strategic move to strengthen its financial position and support future growth initiatives in the automotive industry.