Greater financial flexibility will allow the company to capitalise on acquisitions and other growth opportunities as they emerge
MarineMax has expanded its financing facility to provide for borrowing of up to US$400m from the previous limit of US$350m. The three-year term expires October 2021 and has two one-year renewal options.
“As we execute our growth plans, as shown by our fiscal 2018 results with revenue approaching $1.2bn, we felt it was prudent to add additional capacity for the future,” MarineMax chief financial officer Michael McLamb said in a statement.
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.
“This enhanced and increased facility provides us with greater financial flexibility which allows us to further capitalise on acquisitions and other growth opportunities as they emerge,” McLamb said.
The agent of the facility is Wells Fargo Commercial Distribution Finance and includes M&T Bank, Bank of the West and BB&T.