MarineMax, a recreational boat and yacht retailer, completed $1.35 billion in aggregate financing commitments, comprised entirely of senior secured credit facilities, including
- A $750 million floor plan line of credit for financing inventory, which replaces an existing $500 million floor plan facility
- A $400 million delayed draw term loan for financing the company’s previously announced IGY Marinas acquisition
- A $100 million revolving credit facility
- A $100 million delayed draw mortgage facility
MarineMax will use proceeds from the credit facilities to finance the acquisition of IGY, fund the purchase of eligible new and used marine product inventory, provide additional financial capacity to support future growth and for general business purposes. The combined facilities have a five-year term, maturing in August 2027. Anticipated leverage upon the closing of the IGY acquisition, net of cash, is expected to approximate 1x EBITDA on a proforma trailing 12-months basis.
“This financing bolsters the strength of our balance sheet and will enable us to maintain a conservative leverage ratio when the IGY acquisition is closed. With these new facilities and the organic liquidity that our cash flow from operations provides, MarineMax has further fortified our balance sheet and greatly enhances our financial flexibility. The over-subscription of these facilities demonstrates a significant vote of confidence, as the market recognizes our sustained strong financial performance, disciplined use of capital and growth trajectory,” Michael H. McLamb, executive vice president, CFO and secretary of MarineMax, said. “We appreciate the ongoing support expressed by the commitment of our lenders to MarineMax.”
M&T Bank led the facilities as administrative agent and joint lead arranger, along with Wells Fargo Commercial Distribution Finance as joint lead arranger and floor plan agent. Substantially all of the lenders under the credit facilities have various other relationships with MarineMax and its subsidiaries. Services provided by the lenders may include but are not limited to financial services such as cash management, loans, letters of credit and bank guarantee facilities, investment banking and trust services, while some may serve as a source of retail financing for MarineMax’s customers.