CLEARWATER, Fla. — MarineMax has expanded its relationship with CGI Finance by securing a new $30 million inventory financing facility, MarineMax reported in a release. Previously, MarineMax’s relationship with CGI was focused on retail financing of boats.
The new facility provides for up to $30 million of floor plan financing, which is in addition to the $100 million inventory financing facility secured by the company in June 2010 with GE Capital.
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 floor plan facilities. The facility also includes renewal options, subject to CGI’s approval, and each advance under the facility can remain outstanding for eighteen months. Interest under the facility accrues at a rate of LIBOR plus 350 basis points.
MarineMax’s new and used Azimut inventory that is financed by the facility is pledged as collateral. MarineMax’s real estate is not a pledged asset under the terms of the facility.
“We are pleased to be able to expand our relationship with CGI through this inventory financing facility for our Azimut products,” Michael H. McLamb, Chief Financial Officer of MarineMax, said in the release. “The terms of the facility serve our needs and allow us to operate our business with the flexibility required in this environment. 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.”