MarineMax increases financing capacity
CLEARWATER, Fla. — MarineMax, Inc. has increased its existing financing facility with GE Capital, from $100 million to $150 million.
The increased facility provides for up to $150 million of floor plan financing. The facility has a three-year term, now expiring in June 2014, and it has two, one-year options to renew, subject to lender approval.
Borrowings under the facility will be secured primarily by the company’s inventory that is financed through the facility and related accounts receivable. The company’s real estate is not pledged. MarineMax must maintain compliance with various covenants, including the balance sheet related covenants of a current ratio and a leverage ratio, as defined in the facility. No significant other changes were made to the existing facility.
“We are pleased to be able to strengthen our financial flexibility by adding the additional borrowing capacity,” Chief Financial Officer Michael H. McLamb said in a statement. “Based on our two most recent quarters, we have seen an increase in new boat sales and this expansion of our credit facility better positions us for growth as the industry recovers. The increase also further strengthens our ability to capitalize on other growth opportunities that may arise.”
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