Wells Fargo Commercial Distribution Finance served as agent to an amendment to MarineMax’s $440 million credit facility, which provides MarineMax with greater financial capacity by increasing its liquidity and extending the term. The facility includes M&T Bank, Bank of the West and Truist Bank as lending partners.
The enhanced facility now has a three-year term expiring in May 2023, 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, which is financed through the facility. Under the amendment, certain provisions of the credit facility were modified, providing additional liquidity to the company. The company’s unleveraged real estate portfolio is not pledged under the facility and is excluded from the liquidity calculation.
MarineMax reported $90 million of liquidity at March 31, 2020 and, as a result of the amendment and improved cash from operations, has in excess of $140 million today.
“Based on our very strong balance sheet, we requested and received certain modifications to our credit facility that resulted in increased liquidity and extended the term for another year,” Michael H. McLamb, executive vice president, CFO and secretary of MarineMax, said. “The lenders in our facility have been long-term partners to MarineMax and we appreciate their confidence in our strategies and management, as expressed through this amendment. Increasing our liquidity is certainly beneficial in these uncertain times. With approaching warmer weather, it is nice to see the strong interest and positive sales activity that we experienced in April continue, which is a testimony to the demand for the boating lifestyle.”
Headquartered in Clearwater, FL, MarineMax is a recreational boat and yacht retailer.