Lithia Motors, Inc. (NYSE:LAD) announced today that it has entered into a new credit facility that will be funded by US Bank, DaimlerChrysler Financial Services Americas LLC and Toyota Financial Services. All three lenders will participate equally in Lithia's new credit facility. The credit facility of up to $225 million is for acquisitions and working capital.
Jeff DeBoer, Senior Vice President and CFO of Lithia Motors, stated, "These are three of the strongest and most credit worthy companies in the financial services sector. The funding from US Bank, DaimlerChrysler Financial Services Americas LLC and Toyota Financial Services creates a strong foundation for our long-term capital needs as we continue our strategy of consistent growth in the future."
Tom Pritchard, President of US Bank Dealer Commercial Services, commented, "Our business revolves around a flexible model whereby dealers can rely on US Bank for all levels of financial service and guidance, be they simple banking services or complex financing arrangements such as this new credit facility for Lithia Motors. We are looking forward to the opportunity to expand our relationship with Lithia by working closely with our new syndicated partners from Toyota and DaimlerChrysler."
Lithia Motors, Inc. is a Fortune 700 and Russell 2000 Company with 97 stores located in 39 markets in 13 states, selling 25 brands of new vehicles and over the Internet at "Lithia.com-America's Car & Truck Store." Lithia also sells used vehicles, arranges finance, warranty, and credit insurance contracts, and provides vehicle parts, maintenance, and repair services at all of its locations. Lithia retailed 103,333 new and used vehicles and had $2.9 billion in total revenue in 2005.
About US Bank
US Bank Dealer Commercial Services provides a wide array of commercial banking and financing services to auto, marine, and recreational vehicle dealers. US Bank is part of U.S. Bancorp (NYSE:USB). With assets of $213 billion, U.S. Bancorp is the 6th largest financial holding company in the United States. The company operates 2,434 banking offices and 4,966 ATM's, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. U.S. Bancorp is the parent company of US Bank. Visit U.S. Bancorp on the web at www.usbank.com.
About DaimlerChrysler Financial Services Americas LLC
DaimlerChrysler Financial Services Americas LLC provides brand-specific financing for automotive dealers' inventories and their retail consumers, and conducts business as Chrysler Financial and Mercedes-Benz Financial. As DaimlerChrysler Truck Financial, it also finances commercial vehicles for affiliate products such as Freightliner, Sterling and Western Star. The company serves as the headquarters for operations in the United States, Canada, Mexico, Puerto Rico, Argentina, Brazil and Venezuela, and has approximately 5,600 employees who manage a portfolio of more than $107 billion with nearly five million contracts. DaimlerChrysler Financial Services Americas LLC is a company of the DaimlerChrysler Financial Services Group, headquartered in Berlin, Germany, which operates in 39 countries with an employee base of close to 11,000 and a global portfolio of approximately $147 billion. DaimlerChrysler Financial Services is one of the leading financial services organizations worldwide.
About Toyota Financial Services
TFS is the finance and insurance brand for Toyota in the U.S., offering retail auto financing and leasing through Toyota Motor Credit Corporation (TMCC) and extended service contracts through Toyota Motor Insurance Services (TMIS). Lexus Financial Services is the brand for financial products for Lexus dealers and customers. TFS currently employs over 2,900 associates nationwide, and has managed assets totaling more than $60 billion. It is part of a worldwide network of comprehensive financial services offered by Toyota Financial Services Corporation, a wholly owned subsidiary of Toyota Motor Corporation.
This press release includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to certain risk factors, including, without limitation, economic conditions, acquisition risk factors and others set forth from time to time in the company's filings with the SEC. Specific risks in this press release include the company having sufficient capital and acquisition opportunities to continue its current growth strategies.
For additional information on Lithia Motors, contact the Investor Relations Department: 541-776-6591 or log-on to: www.lithia.com -- go to Investor Relations.