America’s Car-Mart announces amendment to loan and security agreement

By William Gullotti

Buffalo, N.Y., Sept. 30 – America’s Car-Mart, Inc. announced it has entered into amendment No. 3 to the third amended and restated loan and security agreement, extending the term and increasing the size of the company’s existing revolver, according to a press release Thursday.

The agreement was signed on Wednesday.

The amendment increases the total permitted borrowings under the revolver to $600 million from $326 million and extends the term to Sept. 29, 2024.

In connection with the $274 million increase, two new lenders were added to the lending group. The group now includes BMO Harris Bank N.A. ($88 million commitment, up from $71 million), Wells Fargo Bank, NA ($84 million commitment, up from $50 million), BOK Financial ($55 million commitment, up from $50 million), MUFG Union Bank, NA ($84 million commitment, up from $50 million), First Horizon Bank ($75 million commitment, up from $50 million), Arvest Bank ($40 million commitment, up from $30 million), Commerce Bank ($40 million commitment, up from $25 million), CIBC Bank USA ($50 million commitment), and Axos Bank ($84 million commitment).

The amendment also increases the company’s permissible capital expenditure amount to $35 million from $25 million during any fiscal year, amends the distribution limitations to renew the aggregate limit on the company’s repurchases of common stock, restores the accordion feature to $100 million and adds certain mechanics for the replacement of Libor as the applicable benchmark interest rate.

“The increased facility will allow us to continue to grow our customer base, and to continue making key investments to better serve our customers both digitally and in-person as well as provide for additional funding for acquisition opportunities,” said chief financial officer Vicky Judy.

America’s Car-Mart operates 143 automotive dealerships in 11 states. The company is based in Bentonville, Ark.

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