Car-Mart increases borrowing power to $326 million

by Jeff Della Rosa ([email protected]) 216 views 

Rogers-based America’s Car-Mart Inc. recently announced it has increased its total permitting borrowings to $326 million, up from $241 million as the buy here, pay here used car dealer uses a portion of the accordion feature under its Third Amended and Restated Loan and Security Agreement.

MUFG Union Bank, N.A. joined the lending group as a new lender with a $50 million commitment. The group also includes BMO Harris Bank, N.A., agent for the lending group with a $71 million commitment; Wells Fargo Bank, N.A., with a $50 million commitment, up from $30 million; BOKF, NA doing business as BOK Financial with a $50 million commitment; First Horizon Bank with a $50 million commitment, up from $40 million; Arvest Bank with a $30 million commitment; and Commerce Bank with a $25 million commitment, up from $20 million.

Along with the increased permitted borrowings, the following designations for the lending group were authorized: BOKF and Wells Fargo Bank were designated as co-syndication agents under the loan agreement and First Horizon Bank and MUFG Union Bank were designated as co-documentation agents under the loan agreement.

“We appreciate the continued commitment of our existing lenders and are excited to have MUFG as a new partner,” said Vickie Judy, chief financial officer for Car-Mart. “This increase will allow us to continue to grow and make the necessary investments in key areas to provide a foundation for servicing a larger number of customers. The expanded facility will allow us to support our commitment and promise to do whatever it takes to provide customers with excellent service, care and compassion before, during and after the vehicle sale and keep them on the road with peace of mind.”

In October, Car-Mart entered into amendment No. 1 to the Third Amended and Restated Loan and Security Agreement, according to a filing with the U.S. Securities and Exchange Commission. The amendment in the agreement from Sept. 30, 2019, expanded Car-Mart’s borrowing base by removing limitations on the inclusion in the borrowing base of finance receivable balances on medium- and long-term vehicle contracts. This includes those that have an original term between 36 and 42 months or between 42 and 60 months. The contracts previously were limited to 15% and 5%, respectively, and an aggregate of 15% of the eligible finance receivable balances. The amended agreement also allowed Car-Mart to make business acquisitions and expand the company’s ability to dispose of real estate, equipment and other property.

Car-Mart operates used car dealerships in 12 states throughout the south-central United States and opened its 151st dealership in Edmond, Okla., in December.

Shares of Car-Mart (NASDAQ: CRMT) were trading Monday morning (Jan. 4) at $107.84, down $2.00 or 1.82%. In the past 52 weeks, the stock has ranged between $129.70 and $35.18.

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