Lithia Motors raises $46 million through public offering of common stock

Mon. October 19, 2009; Posted: 02:29 PM

Oct 19, 2009 (Datamonitor Financial Deals Tracker via COMTEX) -- LAD | Quote | Chart | News | PowerRating -- Lithia Motors, Inc., a US-based operator automotive franchises, and retailer of new and used vehicles and services, has raised $46 million through an underwritten public offering by issuing 4.6 million shares of the company's Class A common stock, including 0.6 million shares pursuant to the underwriters' over-allotment option, at a price of $10 per share.

Update on October 8, 2009:

Lithia Motors has priced its public offering of 4 million shares of Class A common stock at $10 per share to raise gross proceeds of $40 million.

Lithia Motors has granted the underwriters a 30-day option to purchase up to an additional 0.6 million shares to cover over-allotments, if any. The offering is expected to close on October 15, 2009.

Announcement (October 5, 2009):

Lithia Motors has commenced a public offering of 4 million shares of Class A common stock.

Lithia Motors intends to grant the underwriters a 30-day option to purchase up to an additional 0.6 million shares to cover over-allotments, if any.

J.P. Morgan Securities, Inc. is acting as sole book runner for the offering, while Stephens, Inc. is acting as co-manager for the offering.

Deal Value (US$ Million) 46
Deal Type                IPO
Sub-Category             Secondary Offering
Deal Status              Completed: 2009-10-15

Deal Participants

Target (Company) Lithia Motors, Inc.

Deal Rationale

Lithia Motors intends to use the net proceeds from the offering for general corporate purposes, including working capital and potential acquisitions. In addition, Lithia Motors will use the net proceeds to pay down amounts outstanding under its revolving credit facility and one or more of its flooring lines of credit.

Offer Price ($ per share) 10
No. Shares Issued         4600000

For full details on Lithia Motors Inc Cl A (LAD) click here. Lithia Motors Inc Cl A (LAD) has Short Term PowerRatings of 7. Details on Lithia Motors Inc Cl A (LAD) Short Term PowerRatings is available at This Link.

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