Copart ups revolver, gets new term loan, cuts pricing, extends maturity

By Marisa Wong

Morgantown, W.Va., March 17 – Copart, Inc. amended its credit agreement dated Dec. 3, 2014 to increase secured revolving credit commitments by $50 million, bringing the aggregate revolving credit commitments to $350 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment, dated March 15, also provides for a new $93.4 million secured term loan due March 15, 2021.

In addition, the company extended the termination date of the revolving credit facility and the maturity date of its existing term loan to March 15, 2021 from Dec. 3, 2019.

Pricing was also reduced. The applicable margin for Libor loans was lowered to 112.5 basis points to 200 bps, and the commitment fee was lowered to 15 bps to 30 bps, depending on Copart’s consolidated total net leverage ratio.

Initial pricing is Libor plus 137.5 bps with a commitment fee of 20 bps.

The amendment extended the amortization period for the existing term loan and decreased the quarterly amortization payments for that loan as well.

Copart borrowed the entire $93.4 million of the new term loan at closing. The company intends to use proceeds of the financing, in addition to availability under the secured revolver, for general corporate purposes.

Wells Fargo Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Inc. are lead arrangers and joint bookrunners. Bank of America, NA is syndication agent. Wells Fargo Bank, NA is the administrative agent.

Copart is a Dallas-based provider of online auctions and vehicle remarketing services.

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