Car-Mart Amends Its Corporate Credit Line
by October 12, 2014 6:30 pm 86 views
America’s Car-Mart amended its credit agreement with lenders, securing a $200 million credit line made public in a federal filing Friday (Oct. 10). The prior credit limit was $145 million.
The amendment allows for increases up to an additional $55 million and extends the term to Oct. 8, 2017.
The applicable interest rates under the new terms are based on the company’s consolidated leverage ratio for the preceding fiscal quarter and provides for 0.125% increase in each of the three existing pricing tiers.
The current applicable interest rate under the amendment is generally LIBOR plus 2.375%. Borrowings are secured primarily by accounts receivable and inventory of the respective subsidiaries.
The amendment also resets the $40 million aggregate limit on repurchases of company stock.
The amendment required a closing fee of $217,500 and an arrangement fee of $32,500.