America’s Car-Mart extends revolving lines to 2021, increases limit

By Wendy Van Sickle

Columbus, Ohio, Dec. 7 – America’s Car-Mart, Inc. amended on Dec. 3 its second amended and restated loan agreement dated Dec. 12, 2016 to extend the term of the company’s revolving credit facilities and increase the total permitted borrowings, according to an 8-K filed Monday with the Securities and Exchange Commission.

The revolving facilities now mature on Dec. 3, 2021.

The total permitted borrowings have been increased to $215 million from $200 million, including an increase in the Colonial Auto Finance, Inc. subsidiary’s revolving line of credit to $205 million from $190 million.

At Oct. 31, the end of the company’s second fiscal quarter, there was approximately $35 million in additional availability under the agreement.

Additionally, the amendment reduced the current applicable interest rate by 10 basis points to the lowest pricing tier at Libor plus 225 bps until May 31, 2019, on which date the interest rate will again be subject to adjustment based on the company’s consolidated leverage ratio for the preceding fiscal quarter.

Bank of America, NA is the agent.

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

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