CLEARWATER, Fla.–(BUSINESS THREAD)–MarineMax, Inc. (NYSE: HZO), the world’s largest retailer of recreational boats and yachts, 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”) consisting of the following:
$750 million plant line of credit (the “Plant Facility”) to finance inventory, which replaces an existing $500 million plant facility. $400 million term loan (the “Term Loan”) to finance IGY Marinas (“IGY”). the previously announced acquisition of a $100 million revolving credit facility (the “Revolver”); and $100 million deferred mortgage (the “Mortgage Facility”)
Proceeds from the credit facilities will be used to fund the acquisition of IGY, fund the purchase of eligible new and used marine product inventories, provide additional financial capacity to support future growth, as well as for general business purposes . The combined facilities have a term of five years, maturing in August 2027. Expected leverage at the closing of the IGY acquisition, net of cash, is expected to approach 1x l ‘Proforma EBITDA after twelve months.
“This financing reinforces the strength of our balance sheet and will allow us to maintain a conservative leverage ratio when the IGY acquisition closes. With these new facilities and the organic liquidity provided by our cash flow from operations, MarineMax has further strengthened our balance sheet and greatly improves our financial flexibility.The oversubscription of these facilities demonstrates a significant vote of confidence as the market recognizes our sustained strong financial performance, disciplined use capital and growth trajectory,” said Michael H. McLamb, Executive Vice President, Chief Financial Officer and Secretary of MarineMax, Inc. “We appreciate the continued support expressed by our lenders’ commitment 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 plan agent. Substantially all of the lenders of the credit facilities have other relationships with MarineMax and its subsidiaries. Services provided by lenders may include, but are not limited to, financial services such as cash management, loans, letters of credit and bank guarantees, investment banking and trust services, and some may serve as a source of retail financing for MarineMax customers. In addition, some of the lenders of the Credit Lines were also lenders of the aforementioned facilities that were replaced.
MarineMax is the world’s largest retailer of recreational boats and yachts, selling new and used recreational boats, yachts and related marine products and services, as well as providing brokerage and yacht charter services. MarineMax has more than 100 locations worldwide, including 79 retail dealer locations, which include 34 marinas or storage operations. Through Fraser Yachts and Northrop and Johnson, the company is also the largest superyacht service provider, operating locations worldwide. Cruisers Yachts, a MarineMax company, manufactures boats and yachts with sales through our select retail dealers and through independent distributors. Intrepid Powerboats, a MarineMax company, manufactures powerboats and sells through a direct-to-consumer model. MarineMax provides financial 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 publicly traded company on the New York Stock Exchange (NYSE: HZO). For more information, visit www.marinemax.com.
Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include the expectation that the financing will allow us to maintain a conservative leverage ratio after we close the expected acquisition of ‘IGY and that our financial flexibility has greatly improved. These statements are based on current expectations, forecasts, risks, uncertainties and assumptions that could cause actual results to differ materially from expectations as of the date of this release. These risks, assumptions and uncertainties include the Company’s ability to reduce inventory, manage expenses and achieve its goals and strategies, the quality of new product offerings from the Company’s manufacturing partners, the impacts ( direct and indirect) of COVID-19 in the company. the company, the company’s employees, the company’s manufacturing partners and the economy in general, general economic conditions as well as those of our industry, the level of consumer spending, the ability of the ‘company to integrate the acquisitions into existing operations and many 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 statement, whether as a result of new information, future events or otherwise.