MarineMax expands financing capacity
MarineMax, Inc. (NYSE:HZO), the nation’s largest recreational boat and yacht retailer, announced today that it has expanded its financing facility to provide for borrowings of up to $440 million from the previous limit of $400 million.
The expanded facility has a three-year term, expiring in October 2022, 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 facility contemplates that other lenders may be added by the Company to finance other inventory not financed under this facility.
“Reflecting on our recent acquisitions and looking toward the future, we felt it was prudent to add additional borrowing capacity,” Michael H. McLamb, executive vice president, chief financial officer and secretary of MarineMax, Inc. stated. “Additionally, given the strength of our balance sheet, we continue to enhance the facility to provide greater financial flexibility allowing us to more freely execute our strategies and initiatives, and take advantage of growth opportunities as they arise. We appreciate the confidence expressed by the commitment of our lenders to MarineMax through their ongoing support of our plans.”
The agent of the facility is Wells Fargo Commercial Distribution Finance and includes M&T Bank, Bank of the West and BB&T.
