MarineMax announced today that it is expanding its primary financing facility to provide for borrowing up to $205 million to help support a “long-term cycle of growth” in the marine industry, up from the previous limit of $150 million.
“We believe the marine industry is in a long-term cycle of growth,” MarineMax executive vice president and CFO Michael McLamb said in a statement. “Accordingly, we have extended and added to our financing capacity. The new facility provides for the anticipated growth in our business and borrowing needs. The facility provides the company with increased liquidity, allowing it to more easily capitalize on growth opportunities as they emerge.”
The company added two lenders — M&T Bank and Bank of the West — with an amendment filed to U.S. Securities and Exchange Commission. The amendment modified MarineMax’s Inventory Financing Agreement it originally entered in 2010 with GE Capital’s Commercial Distribution Finance Company, according to the SEC documents.
The amendment, among other things, modified the amount of borrowing availability, interest rate, and maturity date of the credit facility.
The expanded facility has a three-year term, expiring in 2016, and it has two, one-year options to renew subject to lender approval.
MarineMax is securing the borrowings with its inventory, which is financed through the facility, and related accounts receivable, but real estate is not pledged.