MarineMax expanded its financing facility to, among other things, provide for borrowings of up to $300 million from the previous limit of $260 million.
The expanded facility has a three-year term, expiring in October 2019 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 agent of the facility is Wells Fargo Commercial Distribution Finance (formerly GE Capital, CDF) and 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.
Michael H. McLamb, EVP/CFO of MarineMax, said, “As we continue to produce solid year-over-year growth, it is prudent to increase our borrowing capacity in anticipation of future industry improvement and anticipated strong demand for new models from our manufacturing partners. Our lenders understand the industry and improvements to our financing facility are reflective of our strong results, allowing for more financial flexibility.”
Clearwater, FL-based MarineMax is a recreational boat and yacht retailer.