#Senior Notes #Financial Strategy #Lithia Driveway

Lithia & Driveway Announces a $500 Million Senior Notes Offering

On September 3, 2025, Lithia & Driveway (NYSE: LAD) officially revealed its intention to offer $500 million in senior notes, set to mature in 2030. This announcement marks a significant step for the company, showcasing its strategies for financial flexibility and corporate growth.

The Offering Details

Lithia's move entails a private offering of senior notes that are exempt from registration requirements under the Securities Act of 1933. The success of this offering rests on market conditions and various other factors that could influence the process. The funds raised from this offering are earmarked primarily for repaying part of the company's outstanding borrowings under its revolving lines of credit. This financial maneuver is part of Lithia's broader strategy for managing its capital effectively and will enable the company to maintain its competitive edge in the automotive retail industry.

Strategic Use of Proceeds

The net proceeds from the sale of these senior notes will be utilized not only to reduce existing debt but also to bolster general corporate purposes, including potential acquisitions and funding working capital. This plan reflects Lithia’s commitment to strengthening its financial position and pursuing growth opportunities in a highly fragmented industry. As one of the largest global automotive retailers, Lithia aims to modernize personal transportation solutions and enhance customer experiences through both physical and digital channels.

Compliance and Offer Restrictions

It is crucial to note that the offered notes will only be made available to qualified institutional buyers in the United States and outside the country under Regulation S, adhering to the stipulations of the SEC. These notes have not been registered and cannot be sold absent registration or an exemption from registration under applicable laws. Moreover, the announcement reminds potential investors that this is not an offer or solicitation for these securities in any jurisdiction where it would be illegal prior to proper registration or qualification.

About Lithia & Driveway

Lithia & Driveway has distinguished itself as a leader in the automotive retail sector, providing a comprehensive suite of products and services across the vehicle ownership lifecycle. With an extensive network comprising physical locations and e-commerce platforms, Lithia offers simple and transparent experiences tailored to their customers' needs. The company is committed to delivering consistent, profitable growth despite the competitive dynamics of an unconsolidated market.

Looking Ahead

Lithia's management emphasizes that this endeavor is part of its forward-looking strategy aimed at leveraging its diversified business model. The use of terms such as