In addition to Bank of America, the lending group includes Bank of Arkansas, Commerce Bank, First Tennessee Bank and Arvest Bank.
The amended agreement also included an accordion feature allowing for up to an additional $50 million in total commitments, subject to lender approval and/or successful syndication. The agreement provided for three pricing tiers (down from four) for determining the applicable interest rate, based on the company’s consolidated leverage ratio for the preceding fiscal quarter.
“We continue to have what we believe to be one of the strongest balance sheets in our industry. Our debt to equity and debt to Finance Receivable ratios at October 31, 2016 (53.1% and 26.3%, respectively) are strong and a reflection of our focus on cash flows and customer success,” said Jeff Williams, president of America’s Car-Mart. “This new agreement gives us room to continue to grow our company and to serve customers looking for quality vehicles, affordable payment terms and excellent service.”
America’s Car-Mart operates 143 automotive dealerships in 11 states.