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Wells Fargo CDF Agents Upsize for Boating Retailer MarineMax

May 22, 2020, 08:00 AM
Filed Under: Marine
Related: Wells Fargo CDF

MarineMax, Inc., the nation’s largest recreational boat and yacht retailer, announced that it has amended its $440 million credit facility, which provides MarineMax with greater financial capacity by increasing its liquidity and extending the term. The Company reported $90 million of liquidity at March 31, 2020 and, as a result of the amendment and improved cash from operations, has in excess of $140 million today.

The enhanced facility now has a three-year term expiring in May 2023, 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. Under the amendment, certain provisions of the credit facility were modified, providing additional liquidity to the Company. The Company’s sizeable unleveraged real estate portfolio is not pledged under the facility and is excluded from the liquidity calculation.

The Company provided an update on business, indicating the positive retail activity it reported in April has continued.

Michael H. McLamb, Executive Vice President, Chief Financial Officer and Secretary of MarineMax, Inc. stated, “Based on our very strong balance sheet, we requested and received certain modifications to our credit facility that resulted in increased liquidity and extended the term for another year. The lenders in our facility have been long-term partners to MarineMax and we appreciate their confidence in our strategies and management, as expressed through this amendment. Increasing our liquidity is certainly beneficial in these uncertain times. With approaching warmer weather, it is nice to see the strong interest and positive sales activity that we experienced in April continue, which is a testimony to the demand for the boating lifestyle.”

The agent of the facility is Wells Fargo Commercial Distribution Finance and includes the following lending partners: M&T Bank, Bank of the West and Truist Bank.

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