Lithia raised $46M in offering of 4.6M shares

Lithia Motors raised $46 million in public offering of 4.6 million shares

• On 6:35 pm EDT, Thursday October 15, 2009

MEDFORD, Ore. (AP) -- Car dealership owner Lithia Motors Inc. said Thursday it raised $46 million from its previously announced offering of 4.6 million common shares at a price of $10 each.

The company also granted its underwriters an option for another 600,000 shares to cover strong demand.

The net proceeds to the Company after deducting underwriting discounts and commissions and estimated offering expenses are expected to be approximately $43.2 million.

Lithia said it will use the money to pay down revolving credit lines and one or more of the lines of credit it uses to put vehicles on the showroom floor. It will use the rest for general corporate purposes, including working capital and potential acquisitions.

JPMorgan Securities Inc. acted as the sole bookrunner for the offering and Stephens Inc. acted as a co-manager.

Shares of Lithia fell a penny to $12.27 in after-hours trading, after adding 19 cents to close at $12.27.