MarineMax secures new floorplan financing dealPosted on
MarineMax announced today it secured a new $100 million financing facility with GE Capital, replacing its previous financing facility.
The new facility provides for up to $100 million of floorplan financing, which can be increased to $150 million if approved by the lender. The facility has a three-year term, but includes two one-year options to renew, subject to lender approval.
“We are pleased to replace our previous financing facility under favorable terms, which we believe will best serve our needs and will allow us to operate our business with more financial flexibility than before,” said Michael McLamb, executive vice president, CFO and secretary of MarineMax, in a statement.
“Removing the real estate as a pledged asset further provides flexibility to the company in the future, if needed. This new facility is the only debt we have outstanding,” he added.
MarineMax must maintain compliance with various covenants, including the balance sheet related covenants of a current ratio and a leverage ratio, as defined in the facility.
The facility contemplates that other lenders may be added by the company to finance other inventory not financed under this facility if needed.
Clearwater, Fla.-based MarineMax is the nation’s largest recreational boat retailer with 56 locations around the country.