Car-Mart amends loan agreement, adds 2 lenders
by October 2, 2019 9:40 am 632 views
America’s Car-Mart Inc. has entered a third amended and restated loan and security agreement with a group of lenders effective Sept. 30. The Bentonville-based buy here, pay here used car dealer announced Tuesday (Oct. 1) the agreement replaces the company’s second amended and restated loan and security agreement Dec. 12, 2016, and was previously amended Dec. 3, 2018.
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, with a $71 million commitment; Wells Fargo Bank, with a $30 million commitment; BOKF NA, doing business as Bank of Arkansas, with a $50 million commitment, up from $44 million; First Tennessee Bank N.A. with a $40 million commitment, up from $30 million; Arvest Bank, with a $30 million commitment, up from $25 million; and Commerce Bank with a $20 million commitment.
The agreement extends the term of the company’s revolving credit facilities to Sept. 30, 2022, and increases the total permitted borrowings to $241 million, from $215 million. The agreement also increased the accordion feature to $100 million, from $50 million. The amount of company stock repurchases after the date of the agreement that can be excluded from fixed charges for covenant calculation purposes was reset at up to $50 million and is subject to the same conditions as in the existing loan agreement. The existing loan agreement included no prepayment penalties with regard to the payment of the balance owed.
“We are excited to begin a new relationship with BMO and Wells Fargo and appreciate the continuing support of our other lenders,” said Vickie Judy, chief financial officer. “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. This new agreement will position us to continue to grow the number of customers we serve and provide excellent customer service.”