America’s Car-Mart, Inc. Announces Increase of Revolving Line of Credit to $326 Million

Rhea-AI Summary

America’s Car-Mart (NASDAQ: CRMT) announced an increase in its borrowing capacity under a loan agreement, rising from $241 million to $326 million. The expanded facility includes commitments from key lenders such as MUFG Union Bank ($50 million) and Wells Fargo ($50 million, up from $30 million). CFO Vickie Judy highlighted that the new funds will support the company’s growth and enhance customer service across its automotive dealerships, which operate in twelve states focusing on flexible financing for customers with challenging credit histories.

Positive

• Increased borrowing capacity to $326 million, enhancing financial flexibility.
• Inclusion of MUFG Union Bank as a new lender with a $50 million commitment.
• Commitments from existing lenders, strengthening financial support.

Negative

• None.

Rogers, Arkansas, Dec. 31, 2020 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) (the “Company”) today announced it has utilized a portion of the accordion feature under its Third Amended and Restated Loan and Security Agreement (“Agreement”).

The increase allows for total permitted borrowings of $326 million up from $241 million. MUFG Union Bank, N.A. (MUFG) joined the lending group as a new lender with a commitment of $50 million.  The lending group also includes BMO Harris Bank, N.A., Agent for the lending group ($71 million commitment), Wells Fargo Bank, N.A. ($50 million commitment, up from $30 million), BOKF, NA d/b/a BOK Financial ($50 million commitment), First Horizon Bank ($50 million commitment, up from $40 million), Arvest Bank ($30 million commitment), and Commerce Bank ($25 million commitment, up from $20 million).  In addition to the increased permitted borrowings, the following designations for the lending group were authorized: (i) BOKF, NA d/b/a BOK Financial and Wells Fargo Bank, N.A. were designated as Co-Syndication Agents under the Loan Agreement and (ii) First Horizon Bank and MUFG Union Bank, N.A. 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. “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.”

About America's Car-Mart

America’s Car-Mart operates automotive dealerships in twelve states and is one of the largest publicly-held automotive retailers in the United States focused exclusively on the “Integrated Auto Sales and Finance” segment of the used car market.  The Company specializes in the sale of quality, pre-owned vehicles, and features flexible used car financing options for customers with bad credit, no credit, repossessions or even past bankruptcy. The Company emphasizes superior customer service and the building of strong personal relationships with its customers. The Company operates its dealerships primarily in smaller cities throughout the South-Central United States selling quality used vehicles and providing financing for substantially all of its customers.  For more information about America’s Car-Mart, including investor presentations, please visit our website at www.car-mart.com.

FAQ

What is the significance of America’s Car-Mart increasing its borrowing capacity to $326 million?

The increase allows America’s Car-Mart to access additional funds for growth and investments in customer service.

Who are the main lenders involved in the new borrowing agreement for CRMT?

The main lenders include MUFG Union Bank, Wells Fargo, BMO Harris Bank, and others, with total commitments reaching $326 million.

How will the increased borrowing capacity benefit America’s Car-Mart?

The additional funds will support the company's expansion and enable better service for a larger customer base, especially those with challenging credit.

When did America’s Car-Mart announce the increase in borrowing capacity?

America’s Car-Mart announced the increase on December 31, 2020.