MarineMax has amended its credit and security agreement with its lenders, allowing for a line of credit up to $425 million.
The line of credit steps down to $350 million by Sept. 30, 2009, and $300 million by May 31, 2010. However, MarineMax said the amendment allows it to obtain commitments from existing or additional lenders, thereby increasing credit up to $500 million upon lender approval. MarineMax can also obtain advances of up to $20 million against certain real estate assets.
The line of credit can be used for working capital and inventory financing. The credit facility also permits approved-vendor floorplan borrowing of up to $20 million.
“The amendment to our credit facility provides us with additional flexibility to operate our business through these difficult market conditions,” said Michael H. McLamb, executive vice president and chief financial officer, in a statement. “We remain focused on streamlining our cost structure, managing our inventory, and providing exceptional service to our customers, which will best position MarineMax as conditions improve.”
In other news, MarineMax this week filed a report with the Securities and Exchange Commission, which among other items, detailed sales for 2008.
According to the report, MarineMax derived approximately 49 percent of its revenue in fiscal 2008 from the sale of new boats built by Brunswick. The company said it believes it represents about 10 percent of all Brunswick’s marine product sales during the period.
Certain MarineMax dealerships also sell luxury yachts, fishing boats and pontoon boats from other builders, including Italy-based Azimut. During fiscal 2008, new boat sales accounted for approximately 63.5 percent of its revenue.
During fiscal 2008, used-boat sales accounted for approximately 20.5 percent of MarineMax revenue, and approximately 72 percent of the used boats sold were Brunswick models.