MarineMax Expands Financial Flexibility with New Credit Facilities to Execute on Strategic Growth Opportunities
August 09 2022 - 09:04AM
Business Wire
~Provides Financing for Pending Acquisition of
IGY Marinas~ ~Increases Floorplan and Adds Revolving and Mortgage
Lines of Credit~
MarineMax, Inc. (NYSE: HZO), the world’s largest recreational
boat and yacht retailer, today announced the completion of $1.35
billion in aggregate financing commitments.
MarineMax completed the $1.35 billion senior secured credit
facilities (the “Credit Facilities”) which is comprised of the
following:
- $750 million floor plan line of credit (the “Floor Plan”) for
financing inventory, which replaces an existing $500 million floor
plan facility
- $400 million delayed draw term loan (the “Term Loan”) for
financing the IGY Marinas (“IGY”) acquisition previously
announced
- $100 million revolving credit facility (the “Revolver”);
and
- $100 million delayed draw mortgage facility (the “Mortgage
Facility”)
Proceeds from the Credit Facilities will be used to finance the
acquisition of IGY, fund the purchase of eligible new and used
marine product inventory, provide additional financial capacity to
support future growth, as well as for general business purposes.
The combined facilities have a five-year term, maturing August
2027. Anticipated leverage upon the closing of the IGY acquisition,
net of cash, is expected to approximate 1x EBITDA on a proforma
trailing twelve-months basis.
“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. 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. The over-subscription of these
facilities demonstrates a significant vote of confidence, as the
market recognizes our sustained strong financial performance,
disciplined use of capital, and growth trajectory,” said Michael H.
McLamb, Executive Vice President, Chief Financial Officer and
Secretary of MarineMax, Inc. “We appreciate the ongoing support
expressed by the commitment of our lenders to MarineMax.”
The financings were led by M&T Bank as Administrative Agent
and Joint-Lead Arranger, along with Wells Fargo Commercial
Distribution Finance as Joint-Lead Arranger and Floor Plan Agent.
Substantially all of the lenders under the Credit Facilities have
various other relationships with MarineMax and its subsidiaries.
Services provided by the lenders may include but are not limited to
financial services such as cash management, loans, letters of
credit and bank guarantee facilities, investment banking and trust
services, and some may serve as a source of retail financing for
MarineMax’s customers. In addition, some of the lenders under the
Credit Facilities were also lenders under the aforementioned
facilities that were replaced.
About MarineMax MarineMax is the world’s largest
recreational boat and yacht retailer, selling new and used
recreational boats, yachts and related marine products and
services, as well as providing yacht brokerage and charter
services. MarineMax has over 100 locations worldwide, including 79
retail dealership locations, which includes 34 marinas or storage
operations. Through Fraser Yachts and Northrop and Johnson, the
Company also is the largest superyacht services provider, operating
locations across the globe. Cruisers Yachts, a MarineMax company,
manufactures boats and yachts with sales through our select retail
dealership locations and through independent dealers. Intrepid
Powerboats, a MarineMax company, manufactures powerboats and sells
through a direct-to-consumer model. MarineMax provides finance and
insurance services through wholly owned subsidiaries and operates
MarineMax Vacations in Tortola, British Virgin Islands. The Company
also operates Boatyard, a pioneering digital platform that enhances
the boating experience. MarineMax is a New York Stock
Exchange-listed company (NYSE: HZO). For more information, please
visit www.marinemax.com.
Forward Looking Statement
Certain statements in this press release are forward-looking as
defined in the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements include the expectation that the
financing will enable us to maintain a conservative leverage ratio
after the expected IGY acquisition is closed and that our financial
flexibility has been greatly enhanced. These statements are based
on current expectations, forecasts, risks, uncertainties, and
assumptions that may cause actual results to differ materially from
expectations as of the date of this release. These risks,
assumptions and uncertainties include the Company’s abilities to
reduce inventory, manage expenses and accomplish its goals and
strategies, the quality of the new product offerings from the
Company’s manufacturing partners, the impacts (direct and indirect)
of COVID-19 on the Company’s business, the Company’s employees, the
Company’s manufacturing partners, and the overall economy, general
economic conditions, as well as those within our industry, the
level of consumer spending, the Company’s ability to integrate
acquisitions into existing operations, and numerous other factors
identified in the Company’s Form 10-K for the fiscal year ended
September 30, 2021 and other filings with the Securities and
Exchange Commission. The Company disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20220809005423/en/
Michael H. McLamb Chief Financial Officer 727-531-1700
Media: Abbey Heimensen MarineMax, Inc. Investors:
Brad Cohen or Dawn Francfort ICR, LLC
investorrelations@marinemax.com
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