Recreational boat retailer MarineMax said it has expanded its primary financing facility to provide for borrowings of up to $205 million. The facility is led by GE Capital Commercial Distribution Finance and also includes M&T Bank and Bank of the West.
The expanded facility has a three-year term, expiring in June 2016, and it has two, one-year options to renew, subject to lender approval. Borrowings under the facility are secured primarily by the company’s inventory that is financed through the facility and related accounts receivable. The company’s real estate is not pledged.
The facility contemplates that other lenders may be added by the company to finance other inventory not financed under this facility, if needed. Prior to the expansion, this facility was solely provided by GE Capital and allowed for $150 million in borrowing capacity.
Michael H. McLamb, executive vice president, chief financial officer and secretary of MarineMax, said, “Despite reported weather challenges that have persisted throughout the country, we believe the marine industry is in a long-term cycle of growth. Accordingly, we have extended and added to our financing capacity. The new facility provides for the anticipated growth in our business and borrowing needs. The facility provides the company with increased liquidity, allowing it to more easily capitalize on growth opportunities as they emerge.”