America's Car-Mart ups commitments to $125 million, extends maturity

By Susanna Moon

Chicago, March 12 - America's Car-Mart, Inc. said it increased the total commitments under its loan agreements to $125 million and extended the due date to March 9, 2015.

Pricing was reduced to Libor plus 250 basis points, and the amended terms also allow for more share repurchases.

The company amended its loan agreement, which was effective Friday, with a group of lenders including Bank of America, NA as administrative agent, lead arranger and bookrunner, according to a press release.

The amendment raised the total size from $105 million and also contains a $50 million accordion feature.

There was about $21 million in additional availability under the previous agreement, as amended, as of the third fiscal quarter ended Jan. 31, the release noted.

The commitments are as follows: Bank of America for $50 million, down from $52.5 million; BOKF, NA d/b/a Bank of Arkansas for $35 million; Commerce Bank for $15 million, up from $11.67 million; First Tennessee Bank, NA, a new lender, for $15 million; and Arvest Bank for $10 million, up from $5.83 million.

"We continue to have what we believe to be one of the strongest balance sheets in our industry. Our debt to equity and debt to finance receivable ratios at Jan. 31 (45.7% and 26.0%, respectively) are strong and a reflection of our focus on cash flows and customer success," Jeff Williams, America's Car-Mart's chief financial officer, said in the release.

"This new agreement gives us room to continue to grow our company and to serve customers looking for quality vehicles, affordable payment terms and excellent service."

America's Car-Mart is a Bentonville, Ark.-based operator of automotive dealerships.

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