MarineMax announced today that it expanded its relationship with CGI Finance by securing a new $30 million inventory financing facility. Previously, MarineMax's relationship with CGI was focused on retail financing of boats.
The new facility provides for as much as $30 million of floorplan financing, in addition to the $100 million inventory financing facility the company secured in June with a different lender.
"We are pleased to be able to expand our relationship with CGI through this inventory financing facility for our Azimut products. The terms of the facility serve our needs and allow us to operate our business with the flexibility required in this environment," said Michael McLamb, MarineMax executive vice president, CFO and secretary, in a statement.
"We also believe that by expanding our relationship with an international bank, we will be better positioned to serve the needs of our growing list of international buyers," he added.
The facility is designed to provide financing for MarineMax's Azimut inventory needs. The facility has a one-year term, which is typical in the industry for similar floorplan facilities. The facility also includes renewal options, subject to CGI's approval and each advance under the facility can remain outstanding for 18 months. Interest under the facility accrues at the London Interbank Offered Rate, plus 350 basis points.
MarineMax's new and used Azimut inventory, which is financed by the facility, is pledged as collateral. MarineMax's real estate is not a pledged asset under the terms of the facility.