Recreational boat and yacht retailer MarineMax expanded its financing facility to, among other things, provide for borrowings of up to $350 million from the previous limit of $300 million.
The expanded facility has a three-year term, expiring in October 2020 and 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 facility contemplates that other lenders may be added by the company to finance inventory not financed under this facility.
The agent of the facility is Wells Fargo Commercial Distribution Finance and includes M&T Bank, Bank of the West and BB&T.
Michael H. McLamb, EVP, CFO and secretary of MarineMax, said, “We are in our third year of 20% or greater same-store sales growth and trends in the industry remain healthy. With our outlook, it is advantageous to increase our borrowing capacity in anticipation of future growth. We appreciate the confidence expressed by the commitment of our lenders to MarineMax by continuing to support our growth. We believe this enhanced and increased facility provides us with greater financial flexibility that should allow us to further capitalize on potential acquisitions and other growth opportunities as they emerge.”