MarineMax, a recreational boat retailer, announced it expanded its financing facility to provide for borrowings of up to $235 million.
The facility is led by GE Capital Commercial Distribution Finance and also includes M&T Bank and Bank of the West. The facility contemplates that other lenders may be added by the company to finance other inventory not financed under this facility, if needed.
The expanded facility has a three-year term, expiring in August 2017, 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.
Michael H. McLamb, executive vice president, chief financial officer and secretary of MarineMax, stated, “We are adding borrowing capacity as a prudent measure in anticipation for the continued recovery of our industry and expected strong demand for new models from certain key manufacturers. The increased financial flexibility and liquidity will allow us to capitalize on additional growth opportunities as they emerge.”