America’s Car-Mart, Inc. Enters Into New Loan and Security Agreement
October 01 2019 - 3:48PM
America’s Car-Mart, Inc. (NASDAQ: CRMT) (the “Company”) today
announced it has entered into a Third Amended and Restated Loan and
Security Agreement (“Agreement”) with a group of lenders effective
September 30, 2019. The Agreement replaces the Company’s Second
Amended and Restated Loan and Security Agreement dated December 12,
2016, as most recently amended on December 3, 2018 (“Existing Loan
Agreement”), the terms of which have been previously disclosed by
the Company.
Under the Agreement, BMO Harris Bank, N.A.
replaces Bank of America, N.A. as agent, lead arranger and book
manager. Wells Fargo Bank, N.A. also joins the group of
lenders. The lending group includes BMO Harris Bank, N.A.
($71 million commitment), Wells Fargo Bank, N.A. ($30 million
commitment), BOKF, NA d/b/a Bank of Arkansas ($50 million
commitment, up from $44 million), First Tennessee Bank, N.A. ($40
million commitment, up from $30 million), Arvest Bank ($30 million
commitment, up from $25 million), and Commerce Bank ($20 million
commitment, unchanged).
The Agreement extends the term of the Company’s
revolving credit facilities to September 30, 2022 and increases the
total permitted borrowings from $215 million to $241 million. The
Agreement also increases the accordion feature from $50 million to
$100 million. In addition, the amount of Company stock repurchases
after the date of the Agreement that may be excluded from fixed
charges for covenant calculation purposes was reset at up to $50
million, subject to the same conditions as in the Existing Loan
Agreement. There were no prepayment penalties in connection
with the payment of the balance owed under the Existing Loan
Agreement.
“We are excited to begin a new relationship with
BMO and Wells Fargo and appreciate the continuing support of our
other lenders. Our debt to equity and debt to Finance Receivable
ratios at July 31, 2019 (58.1% and 28.3%, respectively) are strong
and a reflection of our focus on cash flows and customer success,”
said Vickie Judy, Chief Financial Officer. “This new agreement will
position us to continue to grow the number of customers we serve
and provide excellent customer service.”
About America's Car-Mart
America’s Car-Mart operates automotive
dealerships in eleven 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 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.
Car-Mart was named to the Forbes 2019 America’s
Best Mid-Size Employers list for two consecutive years and has sold
nearly 650,000 vehicles since fiscal year 2000.
Contacts: Jeffrey A. Williams, President and CEO
(479) 418-8021 or Vickie D. Judy, CFO (479) 418-8081
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