CarMax closes $700 million five-year term loan credit agreement

By Marisa Wong

Los Angeles, Oct. 18 – CarMax, Inc. and CarMax Auto Superstores, Inc. entered into a $700 million term loan credit agreement on Oct. 15 with U.S. Bank NA as a lender and as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The term loan will mature on Oct. 15, 2026.

Loan proceeds were used to pay down normal course borrowings under the company’s $1.45 billion unsecured revolver and for other working capital and general corporate purposes.

Borrowings bear interest at Libor plus an applicable margin. The exact spreads were not disclosed in the filing. The credit agreement also contains Libor replacement provisions.

CarMax continues to target an adjusted debt-to-total capital ratio in a range of 35% to 45%.

CarMax is a Richmond, Va.-based retailer of used vehicles.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.