Medford, Ore-based Lithia Motors, Inc. added $130 million to its existing credit facility with Ford Motor Credit, bumping up the total credit to $580 million. Bryan DeBoer, senior v.p., said the total revolving credit facility comprises tranches of $250 million, $150 million, $130 million, and $50 million. He declined to provide pricing on the facility. DeBoer said the company has a long-standing relationship with Ford Motor Credit as the lender specializes in providing facilities to auto retailers.
DeBoer said the facility will be used to finance new and program vehicle flooring and $130 million represents the company's acquisition budget. "We acquired 48 automobile franchises in the last four years," said DeBoer, explaining that the company will continue a fairly aggressive acquisition strategy this year.