MarineMax amends credit agreement with lenders

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MarineMax Inc. amended its credit and security agreement with its seven lenders to provide the company with greater flexibility under its EBITDA covenant for fiscal 2009 and fiscal 2010.

“The amendment was structured to help us achieve our objective of reducing our inventory and streamlining our cost structure, which will best position MarineMax as industry conditions improve,” said Michael H. McLamb, MarineMax executive vice president, chief financial officer and secretary, in a statement.

“Our significant amount of unleveraged real estate combined with the equity we have in our inventory helped to secure the amendment during this very difficult credit environment,” he said.

The amended facility provides a line of credit with asset-based borrowing availability up to $300 million, stepping down to $250 million by Sept. 30 and $175 million by Sept. 30, 2010, with interim decreases between such dates.

In order to facilitate the reduction of inventory, the amendment enables the company to incur a cumulative EBITDA loss of up to $40 million for fiscal 2009, plus adjustments for items such as store-closing costs and losses on specific brands no longer carried by the company. The amendment also increases the allowable EBITDA loss for the December, March and June quarters of fiscal 2010.

The amended facility matures in May 2011, but includes two one-year renewal options, subject to lender approval.

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