Lithia Motors said Friday it has added $150 million to its credit line, giving it access to $800 million. There are 10 institutions participating in the credit line which continues until April 2017.
Lithia said the revolving line provides $575 million for new vehicle inventory floorplan financing, $80 million for used vehicle inventory floorplan financing, and $145 million for general corporate purposes, including working capital and acquisitions.
The move may signal the nation's ninth-largest auto retailer is on the cusp of adding to its 87 stores in 11 states. In a similar announcement in April, Lithia said it was devoting just $50 million of its $650 million available line for working capital and acquisitions.
"Acquisition activity over the past 12 months and an improving vehicle sales environment increased our inventory requirements," Chris Holzshu, senior vice president and chief financial officer, said in a statement. "The additional capacity under our facility will allow us the room we need to grow."
The Surface Transportation Board has given its blessing to Genesee and Wyoming Inc.'s acquisition of RailAmerica, parent company of the Central Oregon & Pacific Railroad that runs through the Rogue Valley.
RailAmerica owns and operates short line and regional freight railroads, operating a portfolio of 45 individual railroads with approximately 7,500 miles of track in 28 states and three Canadian provinces. Until now, RailAmerica was previously a unit of Fortress Investment Group.
Unless there are objections filed by Dec. 24, the transaction will become final Dec. 28. The voting trust controlling RailAmerica since the transaction closed on Oct. 1 is expected to be dissolved on Dec. 28, with GWI assuming control of RailAmerica and integrating the two companies.
GWI is a global short line and regional freight operator in North America, as well as Australia, the Netherlands and Belgium.