MarineMax amends credit agreement with lenders

Author:
Updated:
Original:

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.

Click here for the full release.

Related

A Record Q2 for Brunswick

With strong global demand in all its business segments, Brunswick Corp. reported another stellar quarter, posting a 57 percent jump in net sales.

OneWater Adds PartsVu

The online marketplace for marine parts, accessories and electronics posted $25 million in sales over the last year.

Groupe Beneteau Updates Revenue Forecasts, More

The builder saw gains in its boat and luxury-home sectors and made several acquisitions, including a majority stake in Dream Yacht Group.

Golden Manufacturing Expands

The fabricator of aluminum boat lifts and aluminum and concrete floating docks adds 18,000 square feet to its Fort Myers, Fla., headquarters.

GetMyBoat Takes You to the Movies

The boat rental marketplace site teams with Disney’s Jungle Cruise for a contest to win a boat trip or movie tickets.

ConMar Adds to Sales Team

The manufacturers’ representatives add industry vet Brain Steele.

Will Canada Reopen to Boaters?

Set to open its borders to fully vaccinated U.S. residents next month, our neighbor to the north could be facing a strike by Canadian border guards and customs officials. Plus, the Great Lakes welcomes a newly designated marine sanctuary.