CLEARWATER, Florida–(BUSINESS WIRE)–MarineMax, Inc. (NYSE: HZO), the world’s largest retailer of pleasure boats and yachts, today announced the completion of $1.35 billion in global funding commitments.
MarineMax has entered into the $1.35 billion senior secured credit facilities (the “Credit Facilities”) which include the following:
$750 million floor plan line of credit (the “Floor Plan”) for inventory financing, which replaces an existing $500 million floor plan facility
$400 million deferred draw term loan (the “Term Loan”) to finance the previously announced acquisition of IGY Marinas (“IGY”)
$100 million revolving credit facility (the “Revolver”); and
$100 million deferred draw mortgage facility (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 inventory, provide additional financial capacity to support future growth, as well as for general business. The combined facilities have a term of five years, maturing in August 2027. The expected leverage at closing of the IGY acquisition, net of cash, is expected to be approximately 1x EBITDA on a pro forma over twelve months.
“This financing reinforces the strength of our balance sheet and will allow us to maintain a prudent debt ratio when the acquisition of IGY is finalized. With these new facilities and the organic liquidity provided by our operating cash flow, MarineMax has further strengthened our balance sheet and significantly improved our financial flexibility. The oversubscription of these facilities demonstrates an important vote of confidence as the market recognizes our continued strong financial performance, disciplined use of capital and growth trajectory,” said Michael H. McLamb, executive vice president, chief financial officer and corporate 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 co-lead arranger, and Wells Fargo Commercial Distribution Finance as co-lead arranger and floor plan agent. Substantially all of the lenders under the Credit Facilities have various 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 guarantee facilities, investment banking and fiduciary services , and some may serve as a retail funding source for MarineMax customers. In addition, certain of the lenders under the Credit Facilities were also lenders under the above facilities which have been superseded.
MarineMax is the largest pleasure boat and yacht retailer in the world. MarineMax has over 100 locations worldwide, including 79 retail outlets, including 34 marinas or storage operations. Through Fraser Yachts and Northrop and Johnson, the company is also the largest provider of superyacht services, operating locations around the world. Cruisers Yachts, a MarineMax company, manufactures boats and yachts with sales through our selected retail outlets and through independent dealers. Intrepid Powerboats, a MarineMax company, manufactures powerboats and sells them through a direct-to-consumer model. MarineMax provides finance 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 listed 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 within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include the expectation that the financing will allow us to maintain a prudent leverage ratio following the closing of the planned acquisition of ‘IGY and that our financial flexibility has been 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 objectives and strategies, the quality of new product offerings from the Company’s manufacturing partners, the impacts (direct and indirect effects) of COVID-19 on the company, the Company’s employees, the Company’s manufacturing partners and the overall economy, general economic conditions, as well as those of our industry, the level of consumer spending , the Company’s ability to integrate acquisitions into existing operations and numerous 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.