MarineMax secures new floorplan financing

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MarineMax, the nation’s largest recreational boat retailer, announced today that it has increased its existing financing facility with GE Capital from $100 million to $150 million.

The increased facility provides for as much as $150 million of floorplan financing. The facility has a three-year term that will expire in June 2014 and has two one-year options to renew, subject to lender approval.

Borrowings under the facility will be secured primarily by the company’s inventory that is financed through the facility and related accounts receivable.

“We are pleased to be able to strengthen our financial flexibility by adding the additional borrowing capacity,” said Michael McLamb, executive vice president, CFO and secretary, in a statement. “Based on our two most recent quarters we have seen an increase in new-boat sales, and this expansion of our credit facility better positions us for growth as the industry recovers. The increase also further strengthens our ability to capitalize on other growth opportunities that may arise.”

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Comments

2 comments on “MarineMax secures new floorplan financing

  1. Curtis

    Are these guys nuts. They just reported that sales are up but they are still losing money. Now they are going to increase inventory in a down market, increase interest expense so they lose more money. The only reason their sales are up is because so many small dealers have gone out of business and there is no one else left
    Plus GE is only using the inventory as the backing. They wanted my first born, home and my ira to do a flooring line, and that is even with the last 2 years being profitable, go figure. Guess it is not what you know but who you know. Did I mention the reason I am profitable is because I am not selling new boats. No interest charges, Life is good.
    I wonder what stock prices will do when the investors figure out they are going to increase interest expense.
    Have a nice day

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