MarineMax secures $1.35b loan
MarineMax has secured loans of $1.35b to support its growth. The yacht retailer has increased its floor plan line by $250m from its existing arrangement and acquired $400m to finance the acquisition of IGY Marinas earlier this week.
The debts have a five-year term that will conclude in August 2027. A $100m loan is a revolving credit facility and a further $100m is a delayed draw mortgage facility.
Michael H. McLamb, executive vice president, CFO, and secretary of MarineMax said: “This financing bolsters the strength of our balance sheet and will enable us to maintain a conservative leverage ratio when the IGY acquisition is closed.”
According to MarineMax, the funds will be used to purchase marine product inventory, support future growth, and for general business purposes. The $400m delayed draw term loan is for financing the $480m cash IGY Marinas acquisition.
“With these new facilities and the organic liquidity that our cash flow from operations provides, MarineMax has further fortified our balance sheet and greatly enhances our financial flexibility,” said McLamb
M&T Bank acted as the administrative agent and joint-lead arranger during the financing process, along with Wells Fargo Commercial Distribution Finance as joint-lead arranger and floor plan agent.