America’s Car-Mart, Inc. Announces Amendment to Loan and Security Agreement
September 30 2021 - 2:37PM
America’s Car-Mart, Inc. (NASDAQ: CRMT) (the “Company”) today
announced it has entered into Amendment No. 3 to the Third Amended
and Restated Loan and Security Agreement (the “Agreement”).
Amendment No. 3 to the Agreement (the “Amendment”) extends the term
of the Company’s revolving credit facilities to September 29, 2024,
and increases the total permitted borrowings to $600 million, an
increase of $274 million.
“As we continue to grow, serving more customers
at the highest levels, our strong lending group is partnering with
us as we allocate capital for our consistent, disciplined growth
approach,” said Jeff Williams, President and CEO. “The consumer
demand for our unique offering is strong and the investments we are
making in the business are putting us in a position to continue to
excel into the future.”
The increase under the Amendment allows for
total permitted borrowings of $600 million up from $326 million. In
connection with this increase, CIBC Bank USA and Axos Bank joined
the lending group as two new lenders. The lending group now
includes BMO Harris Bank N.A. ($88 million commitment, up from $71
million), Wells Fargo Bank, N.A. ($84 million commitment, up from
$50 million), BOKF, NA d/b/a BOK Financial ($55 million commitment,
up from $50 million), MUFG Union Bank, N.A. ($84 million
commitment, up from $50 million), First Horizon Bank ($75 million
commitment, up from $50 million), Arvest Bank ($40 million
commitment, up from $30 million), Commerce Bank ($40 million
commitment, up from $25 million), CIBC Bank USA ($50 million
commitment), and Axos Bank ($84 million commitment).
Among other things, the Amendment also: amends
the distribution limitations to renew the aggregate limit on the
Company’s repurchases of its common stock; increases the Company’s
permissible capital expenditure amount from $25 million to $35
million during any fiscal year; restores the accordion feature back
to $100 million; and adds certain mechanics for the replacement of
LIBOR as the applicable benchmark interest rate under the
Agreement.
“We are very excited by the participation and
commitment of our lending group and happy to be adding two new
lenders,” said Vickie Judy, Chief Financial Officer. “This increase
is fundamental in our strategy to transition from a collections
company to a sales company very good at collections. The increased
facility will allow us to continue to grow our customer base, and
to continue making key investments to better serve our customers
both digitally and in-person as well as provide for additional
funding for acquisition opportunities. The expanded facility will
allow us to support our commitment and promise to provide customers
with excellent service, care and compassion before, during and
after the vehicle sale and keep them on the road with peace of
mind.”
About America's Car-Mart
America’s Car-Mart operates automotive
dealerships in twelve states and is one of the largest
publicly-held automotive retailers in the United States focused
exclusively on the “Integrated Auto Sales and Finance” segment of
the used car market. The Company specializes in the sale of
quality, pre-owned vehicles, and features flexible used car
financing options for customers with bad credit, no credit,
repossessions or even past bankruptcy and emphasizes superior
customer service and the building of strong personal relationships
with its customers. The Company operates its dealerships primarily
in smaller cities throughout the South-Central United States
selling quality used vehicles and providing financing for
substantially all of its customers. For more information about
America’s Car-Mart, including investor presentations, please visit
our website at www.car-mart.com.
Contacts: Jeff
Williams, CEO at (479) 464-9944 or Vickie Judy, CFO at (479)
464-9944
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