XML 356 R17.htm IDEA: XBRL DOCUMENT v3.24.1.u1
DEBT
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
DEBT DEBT
Credit Facilities
US Bank Syndicated Credit Facility
On February 23, 2024, we amended our existing syndicated credit facility (USB credit facility), comprised of 21 financial institutions, including eight manufacturer-affiliated finance companies, maturing February 23, 2029. The amendment increased the total financing commitment and the amount to which the commitment could be further expanded.

This USB credit facility provides for a total financing commitment of $6.0 billion, which may be further expanded, subject to lender approval and the satisfaction of other conditions, up to a total of $6.5 billion. The allocation of the financing commitment is for up to $2.9 billion in new vehicle inventory floorplan financing, up to $800 million in used vehicle inventory floorplan financing, up to $100 million in service loaner vehicle floorplan financing, and up to $2.2 billion in revolving financing for general corporate purposes, including acquisitions and working capital. We have the option to reallocate the commitments under this USB credit facility, provided that the aggregate revolving loan commitment may not be more than 40% of the amount of the aggregate commitment, and the aggregate service loaner vehicle floorplan commitment may not be more than the 3% of the amount of the aggregate commitment. All borrowings from, and repayments to, our lending group are presented in the Consolidated Statements of Cash Flows as financing activities.

Our obligations under our USB credit facility are secured by a substantial amount of our assets, including our inventory (including new and used vehicles, parts and accessories), equipment, accounts receivable (and other rights to payment) and our equity interests in certain of our subsidiaries. Under our USB credit facility, our obligations relating to new vehicle floor plan loans are secured only by collateral owned by Lithia and its dealerships borrowing under the new vehicle floor plan portion of the USB credit facility.

The interest rate on the USB credit facility varies based on the type of debt, with the rate of one-day SOFR plus a credit spread adjustment of 0.10% plus a margin of 1.10% for new vehicle floor plan financing, 1.40% for used vehicle floor plan financing, 1.20% for service loaner floor plan financing, and a variable interest rate on the revolving financing ranging from 1.00% to 2.00% depending on our leverage ratio. The annual interest rates associated with our floor plan commitments are as follows:
CommitmentAnnual Interest Rate at March 31, 2024
New vehicle floor plan6.54%
Used vehicle floor plan6.84%
Service loaner floor plan6.64%
Revolving line of credit6.44%

JPM Warehouse Facility
On February 23, 2024, we amended our securitization facility for our auto loan portfolio (JPM warehouse facility) with JPMorgan Chase Bank, as administrative agent and account bank, providing initial commitments for borrowings of up to $1.0 billion. The JPM warehouse facility matures on July 18, 2025. The interest rate on the JPM
warehouse facility varies based on the Daily Simple SOFR rate plus 1.15% to 1.95%. As of March 31, 2024, we had $389.0 million drawn on the JPM warehouse facility.

Mizuho Warehouse Facility
On February 16, 2024, we amended our securitization facility for our auto loan portfolio (Mizuho warehouse facility), with Mizuho Bank Ltd. as administrative agent and account bank, providing initial commitments for borrowings of up to $750 million. The Mizuho warehouse facility matures on July 20, 2026. The interest rate on the Mizuho warehouse facility varies based on the Daily Simple SOFR rate plus 1.20%. As of March 31, 2024, we had $247.0 million drawn on the Mizuho warehouse facility.

Bank of Nova Scotia Syndicated Credit Facility
On March 18, 2024, we amended our syndicated credit agreement with The Bank of Nova Scotia as agent (BNS credit facility), comprised of six financing institutions, including two manufacturer-affiliated finance companies, to extend the maturity date.

The BNS credit facility provides for a total financing commitment of approximately $1.1 billion CAD, including a working capital revolving credit facility of up to $100 million CAD, a wholesale flooring facility for new vehicles up to $500 million CAD, used vehicle flooring facility of up to $100 million CAD, wholesale leasing facility of up to $400 million CAD, and daily rental vehicle facility up to $25 million CAD.

The interest rate on the Bank of Nova Scotia syndicated credit facility varies based on the type of debt, with the daily compound rate of the Canadian Overnight Repo Rate Average (CORRA) plus a margin of 1.00-1.30%. The annual interest rates associated with our floor plan commitments are as follows:

CommitmentAnnual Interest Rate at March 31, 2024
Wholesale flooring facility6.05%
Used vehicle flooring facility6.30%
Daily rental facility6.25%
Wholesale leasing facility6.35%
Working capital revolving facility6.30%

All Canadian facilities other than the wholesale flooring facility, which is a demand facility, mature on March 18, 2027. The credit agreement includes various financial and other covenants typical of such agreements.

Non-Recourse Notes Payable
In 2024, we issued $329.4 million in non-recourse notes payable related to asset-backed term funding transactions. Below is a summary of outstanding non-recourse notes payable issued:
($ in millions)Balance as of March 31, 2024Initial Principal AmountIssuance DateInterest Rate RangeFinal Distribution Date
LAD Auto Receivables Trust 2021-1 Class A-D82.6 $344.4 11/24/21
1.30% to 3.99%
Various dates through Nov 2029
LAD Auto Receivables Trust 2022-1 Class A-C131.6 298.1 08/17/22
5.21% to 6.85%
Various dates through Apr 2030
LAD Auto Receivables Trust 2023-1 Class A-D279.0 479.7 02/14/23
5.48% to 7.30%
Various dates through Jun 2030
LAD Auto Receivables Trust 2023-2 Class A-D362.5 556.7 05/24/23
5.42% to 6.30%
Various dates through Feb 2031
LAD Auto Receivables Trust 2023-3 Class A-D316.9 415.4 08/23/23
5.95% to 6.92%
Various dates through Dec 2030
LAD Auto Receivables Trust 2023-4 Class A-D352.4 421.2 11/15/23
6.10% to 7.37%
Various dates through Apr 2031
LAD Auto Receivables Trust 2024-1 Class A-D306.5 329.4 02/14/24
5.17% to 6.15%
Various dates through Jun 2031
Total non-recourse notes payable$1,831.5 $2,844.9