America’s Car-Mart (NASDAQ: CRMT) has expanded its asset-based revolving credit facility to $350 million, up from its previous $320 million commitment, and extended its maturity date to March 31, 2027, the company announced Monday.
The ABL Facility, administered by a syndicate of lenders with BMO as the lead agent, had approximately $75 million drawn as of Jan. 31. The financing was oversubscribed, signaling strong lender confidence in the used car retailer’s growth strategy.
“Today’s announcement reflects the success of ongoing initiatives aimed at expanding our funding programs,” said Vickie Judy, Car-Mart’s chief financial officer. “We were excited to be able to upsize the ABL Facility and expand the number of relationships in our bank group.”
The expansion of the credit facility follows Car-Mart’s $200 million asset-backed securitization (ABS) transaction, completed on Jan. 31. The company said the combination of the ABL Facility upsize and the ABS transaction has enhanced its liquidity profile and financing efficiency as it pursues long-term growth initiatives.
Additional details on the ABL Facility will be available in a Form 8-K filing with the Securities and Exchange Commission.
America’s Car-Mart operates automotive dealerships across 12 states, specializing in the integrated auto sales and finance segment of the used car market. The company provides in-house financing to customers, focusing on smaller markets in the South-Central United States.
