MarineMax, Inc., the nation’s largest recreational boat retailer, announced Thursday that it has expanded its financing facility to provide for borrowings of up to $260 million from the previous limit of $235 million.
The expanded facility has a three-year term, expiring in October 2018, and it has two, one-year options to renew, subject to lender approval. Borrowings under the facility are 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. The agent of the facility is GE Capital Commercial Distribution Finance and includes M&T Bank and Bank of the West. The facility contemplates that other lenders may be added by the Company to finance other inventory not financed under this facility, if needed.
Michael H. McLamb, Executive Vice President, Chief Financial Officer and Secretary of MarineMax, Inc. stated, “As we continue to drive solid revenue and earnings growth, we believe it is prudent to add to our borrowing capacity in anticipation of continued industry growth and expected strong demand for new models from our manufacturing partners. This enhanced financial flexibility will allow us to capitalize on other growth opportunities as they emerge.”