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NEW YORK - Lithia & Driveway (NYSE:LAD) announced Wednesday it has priced $600 million in 5.500% senior notes due 2030, representing a $100 million increase from the previously announced offering size.
The private offering is expected to close on September 10, 2025, subject to customary closing conditions. The automotive retailer intends to use the net proceeds to repay a portion of borrowings outstanding under its revolving lines of credit, which may be reborrowed for general corporate purposes, including acquisitions and working capital. The company has demonstrated strong shareholder returns, maintaining dividend payments for 16 consecutive years, with analysts setting a consensus price target range of $310-500.
The notes will be offered and sold only to qualified institutional buyers in the United States under Rule 144A of the Securities Act of 1933 and to non-U.S. persons under Regulation S. The securities have not been registered under the Securities Act and cannot be offered or sold in the United States without registration or an applicable exemption.
Lithia & Driveway operates as the largest global automotive retailer, providing products and services throughout the vehicle ownership lifecycle through its network of physical locations, e-commerce platforms, and captive finance solutions.
The information in this article is based on a company press release statement.
In other recent news, Lithia & Driveway reported its Q2 2025 earnings, surpassing analysts’ expectations with adjusted earnings per share of $10.24 compared to the projected $9.14. However, the company narrowly missed revenue forecasts, posting $9.58 billion against the anticipated $9.59 billion. In a move to strengthen its financial strategy, Lithia & Driveway announced a $500 million senior notes offering, intending to use the proceeds to reduce outstanding borrowings under its revolving credit lines. Additionally, the company increased its share repurchase authorization by $750 million, raising the total repurchase capacity to $1.08 billion. This strategic decision follows the repurchase of approximately 812,000 shares at an average price of $298 per share in the third quarter. Lithia & Driveway has already spent $492 million on share repurchases in 2025, accounting for 6.1% of its outstanding shares. These developments highlight the company’s ongoing efforts to manage its capital structure and shareholder returns effectively.
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