[8-K] Lithia Motors, Inc. Reports Material Event
Lithia Motors entered into a Sixth Amendment to its loan agreement, increasing total financing commitments from $6.0 billion to $6.5 billion, with potential expansion to $7.0 billion subject to lender approval. The amendment establishes initial allocations of $3.0 billion for the New Vehicle Floorplan, $0.9 billion for the Used Vehicle Floorplan, $2.5 billion for the Revolver and $0.1 billion for the Service Loaner Floorplan. It permits the aggregate revolving loan to be up to 50% of aggregate commitments, expands eligible real estate for the revolving base, and removes Financing Operations interest expense from the fixed charge coverage ratio. A copy is filed as Exhibit 10.1.
Lithia Motors ha sottoscritto un sesto emendamento al suo contratto di prestito, portando gli impegni di finanziamento complessivi da $6.0 miliardi a $6.5 miliardi, con possibilità di estensione fino a $7.0 miliardi previa approvazione dei finanziatori. L'emendamento stabilisce allocazioni iniziali di $3.0 miliardi di dollari per il New Vehicle Floorplan, $0.9 miliardi di dollari per il Used Vehicle Floorplan, $2.5 miliardi di dollari per il Revolver e $0.1 miliardi di dollari per il Service Loaner Floorplan. Consente che il prestito rotativo aggregato arrivi fino al 50% degli impegni complessivi, amplia gli immobili ammissibili per la base rotativa e esclude gli oneri da interessi delle Financing Operations dal rapporto di copertura delle spese fisse. Una copia è depositata come Exhibit 10.1.
Lithia Motors suscribió una sexta enmienda a su contrato de préstamo, elevando los compromisos totales de financiación de $6.0 mil millones a $6.5 mil millones, con posibilidad de ampliación hasta $7.0 mil millones previa aprobación de los prestamistas. La enmienda establece asignaciones iniciales de $3.0 mil millones de dólares para el New Vehicle Floorplan, $0.9 mil millones de dólares para el Used Vehicle Floorplan, $2.5 mil millones de dólares para el Revolver y $0.1 mil millones de dólares para el Service Loaner Floorplan. Permite que el préstamo revolvente agregado represente hasta el 50% de los compromisos totales, amplía los bienes raíces elegibles para la base revolvente y excluye los gastos por intereses de Financing Operations del ratio de cobertura de cargos fijos. Se presenta una copia como Exhibit 10.1.
Lithia Motors는 대출 계약에 대한 여섯 번째 수정안(Sixth Amendment)을 체결하여 총 금융 약정을 $6.0십억 달러에서 $6.5십억 달러로 늘렸으며, 대출 기관의 승인에 따라 최대 $7.0십억 달러까지 확대할 수 있습니다. 이 수정안은 신차 재고 금융(New Vehicle Floorplan)에 대해 $3.0십억 달러, 중고차 재고 금융(Used Vehicle Floorplan)에 대해 $0.9십억 달러, 회전 신용(Revolver)에 대해 $2.5십억 달러, 서비스 대차(Service Loaner Floorplan)에 대해 $0.1십억 달러의 초기 할당을 규정합니다. 총 회전 대출이 전체 약정의 50%까지 가능하도록 허용하고, 회전 기반에 포함되는 적격 부동산 범위를 확대하며, Financing Operations의 이자비용을 고정비용 보전 비율에서 제외합니다. 사본은 Exhibit 10.1로 제출되어 있습니다.
Lithia Motors a conclu un sixième avenant à son contrat de prêt, portant les engagements de financement totaux de $6.0 milliards à $6.5 milliards de dollars, avec une possibilité d'extension à $7.0 milliards sous réserve de l'approbation des prêteurs. L'avenant fixe des allocations initiales de $3.0 milliards de dollars pour le New Vehicle Floorplan, $0.9 milliard de dollars pour le Used Vehicle Floorplan, $2.5 milliards de dollars pour le Revolver et $0.1 milliard de dollars pour le Service Loaner Floorplan. Il autorise que le prêt renouvelable agrégé puisse atteindre jusqu'à 50% des engagements totaux, étend l'immobilier éligible pour la base du revolver et exclut les charges d'intérêts des Financing Operations du ratio de couverture des charges fixes. Une copie est déposée en tant qu'Exhibit 10.1.
Lithia Motors hat eine sechste Nachtragsvereinbarung (Sixth Amendment) zu seinem Kreditvertrag abgeschlossen und die gesamten Finanzierungszusagen von $6.0 Milliarden auf $6.5 Milliarden US-Dollar erhöht, mit der Möglichkeit einer Erweiterung auf $7.0 Milliarden vorbehaltlich der Zustimmung der Kreditgeber. Der Nachtrag legt anfängliche Zuweisungen von $3.0 Milliarden US-Dollar für den New Vehicle Floorplan, $0.9 Milliarden US-Dollar für den Used Vehicle Floorplan, $2.5 Milliarden US-Dollar für den Revolver und $0.1 Milliarden US-Dollar für den Service Loaner Floorplan fest. Er erlaubt, dass der aggregierte revolvierende Kredit bis zu 50% der Gesamtzusagen beträgt, erweitert die für die Revolver-Basis zulässigen Immobilien und schließt Zinsaufwendungen der Financing Operations aus der Kennzahl zur Deckung fester Belastungen aus. Eine Kopie ist als Exhibit 10.1 eingereicht.
- Total financing commitment increased from $6.0 billion to $6.5 billion, providing additional liquidity
- Initial allocations provided including $3.0B new vehicle floorplan, $0.9B used vehicle floorplan, $2.5B revolver, and $0.1B service loaner facility
- Greater flexibility to reallocate commitments allowing aggregate revolving loans up to 50% of aggregate commitments
- Removes Financing Operations interest expense from the fixed charge coverage ratio, which reduces fixed charges used in that covenant calculation
- Creates a direct financial obligation under the Loan Agreement as reported in Item 2.03
- Expansion to $7.0 billion is conditional on lender approval and other conditions, so the maximum increase is not guaranteed
Insights
TL;DR: Amendment increases liquidity and covenant flexibility, improving short-term financing options for inventory and working capital.
The Sixth Amendment raises the aggregate commitment to $6.5 billion with room to expand to $7.0 billion, and allocates sizable capacity to both new and used vehicle floorplans and a $2.5 billion revolver. Allowing the revolver to be up to 50% of commitments and expanding eligible real estate increases the company’s financing flexibility. Removing Financing Operations interest expense from the fixed charge coverage ratio reduces reported fixed charges under that covenant, effectively improving covenant headroom.
TL;DR: Amendment creates larger borrowing capacity and a direct financial obligation while changing covenant calculations.
The filing explicitly records a direct financial obligation under Item 2.03. The amendment’s expansion of commitments and revolver capacity increases the company’s available funded exposure, and the potential expansion to $7.0 billion is conditional on lender approval. The removal of Financing Operations interest expense from the fixed charge coverage ratio alters how covenant compliance is measured, which investors should note as a change in covenant metrics.
Lithia Motors ha sottoscritto un sesto emendamento al suo contratto di prestito, portando gli impegni di finanziamento complessivi da $6.0 miliardi a $6.5 miliardi, con possibilità di estensione fino a $7.0 miliardi previa approvazione dei finanziatori. L'emendamento stabilisce allocazioni iniziali di $3.0 miliardi di dollari per il New Vehicle Floorplan, $0.9 miliardi di dollari per il Used Vehicle Floorplan, $2.5 miliardi di dollari per il Revolver e $0.1 miliardi di dollari per il Service Loaner Floorplan. Consente che il prestito rotativo aggregato arrivi fino al 50% degli impegni complessivi, amplia gli immobili ammissibili per la base rotativa e esclude gli oneri da interessi delle Financing Operations dal rapporto di copertura delle spese fisse. Una copia è depositata come Exhibit 10.1.
Lithia Motors suscribió una sexta enmienda a su contrato de préstamo, elevando los compromisos totales de financiación de $6.0 mil millones a $6.5 mil millones, con posibilidad de ampliación hasta $7.0 mil millones previa aprobación de los prestamistas. La enmienda establece asignaciones iniciales de $3.0 mil millones de dólares para el New Vehicle Floorplan, $0.9 mil millones de dólares para el Used Vehicle Floorplan, $2.5 mil millones de dólares para el Revolver y $0.1 mil millones de dólares para el Service Loaner Floorplan. Permite que el préstamo revolvente agregado represente hasta el 50% de los compromisos totales, amplía los bienes raíces elegibles para la base revolvente y excluye los gastos por intereses de Financing Operations del ratio de cobertura de cargos fijos. Se presenta una copia como Exhibit 10.1.
Lithia Motors는 대출 계약에 대한 여섯 번째 수정안(Sixth Amendment)을 체결하여 총 금융 약정을 $6.0십억 달러에서 $6.5십억 달러로 늘렸으며, 대출 기관의 승인에 따라 최대 $7.0십억 달러까지 확대할 수 있습니다. 이 수정안은 신차 재고 금융(New Vehicle Floorplan)에 대해 $3.0십억 달러, 중고차 재고 금융(Used Vehicle Floorplan)에 대해 $0.9십억 달러, 회전 신용(Revolver)에 대해 $2.5십억 달러, 서비스 대차(Service Loaner Floorplan)에 대해 $0.1십억 달러의 초기 할당을 규정합니다. 총 회전 대출이 전체 약정의 50%까지 가능하도록 허용하고, 회전 기반에 포함되는 적격 부동산 범위를 확대하며, Financing Operations의 이자비용을 고정비용 보전 비율에서 제외합니다. 사본은 Exhibit 10.1로 제출되어 있습니다.
Lithia Motors a conclu un sixième avenant à son contrat de prêt, portant les engagements de financement totaux de $6.0 milliards à $6.5 milliards de dollars, avec une possibilité d'extension à $7.0 milliards sous réserve de l'approbation des prêteurs. L'avenant fixe des allocations initiales de $3.0 milliards de dollars pour le New Vehicle Floorplan, $0.9 milliard de dollars pour le Used Vehicle Floorplan, $2.5 milliards de dollars pour le Revolver et $0.1 milliard de dollars pour le Service Loaner Floorplan. Il autorise que le prêt renouvelable agrégé puisse atteindre jusqu'à 50% des engagements totaux, étend l'immobilier éligible pour la base du revolver et exclut les charges d'intérêts des Financing Operations du ratio de couverture des charges fixes. Une copie est déposée en tant qu'Exhibit 10.1.
Lithia Motors hat eine sechste Nachtragsvereinbarung (Sixth Amendment) zu seinem Kreditvertrag abgeschlossen und die gesamten Finanzierungszusagen von $6.0 Milliarden auf $6.5 Milliarden US-Dollar erhöht, mit der Möglichkeit einer Erweiterung auf $7.0 Milliarden vorbehaltlich der Zustimmung der Kreditgeber. Der Nachtrag legt anfängliche Zuweisungen von $3.0 Milliarden US-Dollar für den New Vehicle Floorplan, $0.9 Milliarden US-Dollar für den Used Vehicle Floorplan, $2.5 Milliarden US-Dollar für den Revolver und $0.1 Milliarden US-Dollar für den Service Loaner Floorplan fest. Er erlaubt, dass der aggregierte revolvierende Kredit bis zu 50% der Gesamtzusagen beträgt, erweitert die für die Revolver-Basis zulässigen Immobilien und schließt Zinsaufwendungen der Financing Operations aus der Kennzahl zur Deckung fester Belastungen aus. Eine Kopie ist als Exhibit 10.1 eingereicht.
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
| Exhibit No. | Description | ||||
10.1 | Sixth Amendment to Fourth Amended and Restated Loan Agreement, dated August 6, 2025, among Lithia Motors, Inc., the subsidiaries of Lithia Motors, Inc. listed on the signature pages of the agreement or that thereafter become borrowers thereunder, the lenders party thereto from time to time, and U.S. Bank National Association. | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||
| Date: August 8, 2025 | LITHIA MOTORS, INC. | |||||||
| Registrant | ||||||||
| By: | /s/ Tina Miller | |||||||
| Tina Miller | ||||||||
| Chief Financial Officer, Senior Vice President, and Principal Accounting Officer | ||||||||
FAQ
What change did Lithia Motors (LAD) make to its credit facility?
How are the initial allocations under the amended facility distributed?
Does the amendment change covenant calculations?
Can the company increase the revolver portion of the facility?
Where can I find the full amendment text?
