[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 possibilit脿 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 猫 depositata come Exhibit 10.1.
Lithia Motors suscribi贸 una sexta enmienda a su contrato de pr茅stamo, elevando los compromisos totales de financiaci贸n de $6.0 mil millones a $6.5 mil millones, con posibilidad de ampliaci贸n hasta $7.0 mil millones previa aprobaci贸n de los prestamistas. La enmienda establece asignaciones iniciales de $3.0 mil millones de d贸lares para el New Vehicle Floorplan, $0.9 mil millones de d贸lares para el Used Vehicle Floorplan, $2.5 mil millones de d贸lares para el Revolver y $0.1 mil millones de d贸lares para el Service Loaner Floorplan. Permite que el pr茅stamo revolvente agregado represente hasta el 50% de los compromisos totales, ampl铆a los bienes ra铆ces 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 Motors電� 雽�於� 瓿勳暯鞐� 雽�頃� 鞐劘 氩堨Ц 靾橃爼鞎�(Sixth Amendment)鞚� 觳搓舶頃橃棳 齑� 旮堨湹 鞎届爼鞚� $6.0鞁柕 雼煬鞐愳劀 $6.5鞁柕 雼煬搿� 電橂牳鞙茧┌, 雽�於� 旮瓣磤鞚� 鞀轨澑鞐� 霐半澕 斓滊寑 $7.0鞁柕 雼煬旯岇 頇曤寑頃� 靾� 鞛堨姷雼堧嫟. 鞚� 靾橃爼鞎堨潃 鞁犾皑 鞛碃 旮堨湹(New Vehicle Floorplan)鞐� 雽�頃� $3.0鞁柕 雼煬, 欷戧碃彀� 鞛碃 旮堨湹(Used Vehicle Floorplan)鞐� 雽�頃� $0.9鞁柕 雼煬, 須岇爠 鞁犾毄(Revolver)鞐� 雽�頃� $2.5鞁柕 雼煬, 靹滊箘鞀� 雽�彀�(Service Loaner Floorplan)鞐� 雽�頃� $0.1鞁柕 雼煬鞚� 齑堦赴 頃犽嫻鞚� 攴滌爼頃╇媹雼�. 齑� 須岇爠 雽�於滌澊 鞝勳泊 鞎届爼鞚� 50%旯岇 臧�電ロ晿霃勲 項堨毄頃橁碃, 須岇爠 旮半皹鞐� 韽暔霅橂姅 鞝侁博 攵�霃欖偘 氩旍渼毳� 頇曤寑頃橂┌, Financing Operations鞚� 鞚挫瀽牍勳毄鞚� 瓿犾爼牍勳毄 氤挫爠 牍勳湪鞐愳劀 鞝滌櫢頃╇媹雼�. 靷掣鞚� Exhibit 10.1搿� 鞝滌稖霅橃柎 鞛堨姷雼堧嫟.
Lithia Motors a conclu un sixi猫me avenant 脿 son contrat de pr锚t, portant les engagements de financement totaux de $6.0 milliards 脿 $6.5 milliards de dollars, avec une possibilit茅 d'extension 脿 $7.0 milliards sous r茅serve de l'approbation des pr锚teurs. 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 pr锚t renouvelable agr茅g茅 puisse atteindre jusqu'脿 50% des engagements totaux, 茅tend l'immobilier 茅ligible pour la base du revolver et exclut les charges d'int茅r锚ts des Financing Operations du ratio de couverture des charges fixes. Une copie est d茅pos茅e 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 erh枚ht, mit der M枚glichkeit einer Erweiterung auf $7.0 Milliarden vorbehaltlich der Zustimmung der Kreditgeber. Der Nachtrag legt anf盲ngliche Zuweisungen von $3.0 Milliarden US-Dollar f眉r den New Vehicle Floorplan, $0.9 Milliarden US-Dollar f眉r den Used Vehicle Floorplan, $2.5 Milliarden US-Dollar f眉r den Revolver und $0.1 Milliarden US-Dollar f眉r den Service Loaner Floorplan fest. Er erlaubt, dass der aggregierte revolvierende Kredit bis zu 50% der Gesamtzusagen betr盲gt, erweitert die f眉r die Revolver-Basis zul盲ssigen Immobilien und schlie脽t 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鈥檚 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鈥檚 expansion of commitments and revolver capacity increases the company鈥檚 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 possibilit脿 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 猫 depositata come Exhibit 10.1.
Lithia Motors suscribi贸 una sexta enmienda a su contrato de pr茅stamo, elevando los compromisos totales de financiaci贸n de $6.0 mil millones a $6.5 mil millones, con posibilidad de ampliaci贸n hasta $7.0 mil millones previa aprobaci贸n de los prestamistas. La enmienda establece asignaciones iniciales de $3.0 mil millones de d贸lares para el New Vehicle Floorplan, $0.9 mil millones de d贸lares para el Used Vehicle Floorplan, $2.5 mil millones de d贸lares para el Revolver y $0.1 mil millones de d贸lares para el Service Loaner Floorplan. Permite que el pr茅stamo revolvente agregado represente hasta el 50% de los compromisos totales, ampl铆a los bienes ra铆ces 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 Motors電� 雽�於� 瓿勳暯鞐� 雽�頃� 鞐劘 氩堨Ц 靾橃爼鞎�(Sixth Amendment)鞚� 觳搓舶頃橃棳 齑� 旮堨湹 鞎届爼鞚� $6.0鞁柕 雼煬鞐愳劀 $6.5鞁柕 雼煬搿� 電橂牳鞙茧┌, 雽�於� 旮瓣磤鞚� 鞀轨澑鞐� 霐半澕 斓滊寑 $7.0鞁柕 雼煬旯岇 頇曤寑頃� 靾� 鞛堨姷雼堧嫟. 鞚� 靾橃爼鞎堨潃 鞁犾皑 鞛碃 旮堨湹(New Vehicle Floorplan)鞐� 雽�頃� $3.0鞁柕 雼煬, 欷戧碃彀� 鞛碃 旮堨湹(Used Vehicle Floorplan)鞐� 雽�頃� $0.9鞁柕 雼煬, 須岇爠 鞁犾毄(Revolver)鞐� 雽�頃� $2.5鞁柕 雼煬, 靹滊箘鞀� 雽�彀�(Service Loaner Floorplan)鞐� 雽�頃� $0.1鞁柕 雼煬鞚� 齑堦赴 頃犽嫻鞚� 攴滌爼頃╇媹雼�. 齑� 須岇爠 雽�於滌澊 鞝勳泊 鞎届爼鞚� 50%旯岇 臧�電ロ晿霃勲 項堨毄頃橁碃, 須岇爠 旮半皹鞐� 韽暔霅橂姅 鞝侁博 攵�霃欖偘 氩旍渼毳� 頇曤寑頃橂┌, Financing Operations鞚� 鞚挫瀽牍勳毄鞚� 瓿犾爼牍勳毄 氤挫爠 牍勳湪鞐愳劀 鞝滌櫢頃╇媹雼�. 靷掣鞚� Exhibit 10.1搿� 鞝滌稖霅橃柎 鞛堨姷雼堧嫟.
Lithia Motors a conclu un sixi猫me avenant 脿 son contrat de pr锚t, portant les engagements de financement totaux de $6.0 milliards 脿 $6.5 milliards de dollars, avec une possibilit茅 d'extension 脿 $7.0 milliards sous r茅serve de l'approbation des pr锚teurs. 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 pr锚t renouvelable agr茅g茅 puisse atteindre jusqu'脿 50% des engagements totaux, 茅tend l'immobilier 茅ligible pour la base du revolver et exclut les charges d'int茅r锚ts des Financing Operations du ratio de couverture des charges fixes. Une copie est d茅pos茅e 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 erh枚ht, mit der M枚glichkeit einer Erweiterung auf $7.0 Milliarden vorbehaltlich der Zustimmung der Kreditgeber. Der Nachtrag legt anf盲ngliche Zuweisungen von $3.0 Milliarden US-Dollar f眉r den New Vehicle Floorplan, $0.9 Milliarden US-Dollar f眉r den Used Vehicle Floorplan, $2.5 Milliarden US-Dollar f眉r den Revolver und $0.1 Milliarden US-Dollar f眉r den Service Loaner Floorplan fest. Er erlaubt, dass der aggregierte revolvierende Kredit bis zu 50% der Gesamtzusagen betr盲gt, erweitert die f眉r die Revolver-Basis zul盲ssigen Immobilien und schlie脽t 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 | ||||||||
Source:
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?
