MarineMax expanded its financing facility to provide for borrowings of up to $400 million from the previous limit of $350 million.
“As we execute our growth plans, as shown by our fiscal 2018 results with revenue approaching $1.2 billion, we felt it was prudent to add additional capacity for the future,” CFO Mike McLamb said in a statement.
The expanded facility has a three-year term, expiring in October 2021, and has two, one-year options to renew, subject to lender approval.
MarineMax’s real estate is not pledged. The facility contemplates that other lenders may be added by the company to finance inventory not financed under this facility. Borrowings under the facility are secured primarily by the company’s inventory, which is financed through the facility and related accounts receivable.
“We appreciate the confidence expressed by the commitment of our lenders to MarineMax through their ongoing support of our anticipated growth,” said Michael H. McLamb, executive vice president, chief financial officer and secretary of MarineMax. “This enhanced and increased facility provides us with greater financial flexibility, which allows us to further capitalize on acquisitions and other growth opportunities as they emerge.”
The agent of the facility is Wells Fargo Commercial Distribution Finance and includes M&T Bank, Bank of the West and BB&T.