Americas Car-Mart Secures $250M Credit Facility

TL;DR

ACMT just locked in $250M in new credit lines with Wells Fargo, maturing in 2029. Big liquidity boost!

AI Summary

On July 12, 2024, Americas Car-Mart, Inc. entered into a Material Definitive Agreement, specifically a Credit Agreement with Wells Fargo Bank, National Association, as administrative agent. This agreement establishes a new $150 million revolving credit facility, which matures on July 12, 2029. The company also entered into a new Term Loan Agreement with Wells Fargo Bank, National Association, for a $100 million term loan, also maturing on July 12, 2029.

Why It Matters

This significant financing provides Americas Car-Mart with substantial liquidity, potentially enabling expansion, debt refinancing, or operational improvements to support its business growth.

Risk Assessment

Risk Level: medium — While new credit facilities are generally positive, the company's financial health and ability to service this new debt will determine the ultimate impact.

Key Numbers

• $250.0M — Total New Credit Facilities (Combines the $150M revolving credit facility and $100M term loan.)
• $150.0M — Revolving Credit Facility (Provides ongoing access to funds.)
• $100.0M — Term Loan (Provides a lump sum of capital.)
• 5 years — Maturity Term (Both facilities mature on July 12, 2029.)

Key Players & Entities

• Americas Car-Mart, Inc. (company) — Registrant
• Wells Fargo Bank, National Association (company) — Administrative Agent and Lender
• $150 million (dollar_amount) — Revolving Credit Facility Amount
• $100 million (dollar_amount) — Term Loan Amount
• July 12, 2029 (date) — Maturity Date for Credit Facilities
• July 12, 2024 (date) — Effective Date of Agreements

FAQ

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share CRMT NASDAQ Global Select M
• $150 million — ch the Company's affiliate has borrowed $150 million in funding for the Company's finance re

Filing Documents

• f8k_071524.htm (8-K) — 31KB
• exh_108.htm (EX-10.8) — 60KB
• 0001171843-24-004021.txt ( ) — 272KB
• crmt-20240712.xsd (EX-101.SCH) — 3KB
• crmt-20240712_lab.xml (EX-101.LAB) — 33KB
• crmt-20240712_pre.xml (EX-101.PRE) — 22KB
• f8k_071524_htm.xml (XML) — 4KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. On July 12, 2024, America's Car-Mart, Inc., a Texas corporation (the "Company"), and its subsidiaries, Colonial Auto Finance, Inc., an Arkansas corporation ("Colonial"), America's Car Mart Inc., an Arkansas corporation ("ACM"), and Texas Car-Mart, Inc., a Texas corporation ("TCM" and collectively with Colonial and ACM, the "Borrowers"), entered into Amendment No. 7 to the Third Amended and Restated Loan and Security Agreement ("Agreement"), dated as of September 30, 2019, by and among the Company, Colonial, ACM, TCM and a group of lenders, as previously amended on October 29, 2020, February 10, 2021, September 29, 2021, April 22, 2022, February 22, 2023, and February 28, 2024. Amendment No. 7 to the Agreement (the "Amendment") makes certain adjustments and modifications to the terms of the Agreement to, among other things, permit the Company and certain of its subsidiaries to enter into an amortizing warehouse loan facility that provides additional funding for the Company's finance receivables, with recourse against the Company for up to 10% of the aggregate amount borrowed under the warehouse loan facility. The Amendment also makes certain modifications to the fixed charge coverage ratio covenant under the Agreement. Certain members of the lending group under the Agreement, or their respective affiliates, have or may have various relationships with the Company and its subsidiaries involving the provision of a variety of financial services, including treasury management, commercial banking, trust, financial advisory or other financial and commercial services, for which they received, or will receive, customary fees and expenses. The above description is a summary and is qualified in its entirety by the Amendment, which is filed as an exhibit to this report and is incorporated herein by reference.

03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth above under Item 1.01 is hereby incorporated by reference into this Item 2.03.

01. Other Events

Item 8.01. Other Events. On July 12, 2024, the Company's principal operating subsidiary, America's Car Mart, Inc., and a newly formed affiliate entered into a loan and security agreement with Atlas Securitized Products Funding 1, L.P. and its servicing affiliate, under which the Company's affiliate has borrowed $150 million in funding for the Company's finance receivables through an amortizing warehouse loan facility collateralized by certain loans originated by the Company's operating subsidiaries, America's Car Mart, Inc. and Texas Car-Mart, Inc. The warehouse loan facility provides for additional borrowing availability, borrowed under the warehouse facility. Principal and interest on the outstanding balance are payable monthly at an interest rate equal to the adjusted Term SOFR plus 350 basis points. The warehouse loan facility matures on July 12, 2026.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. 10.1 Third Amended and Restated Loan and Security Agreement dated September 30, 2019, among America's Car-Mart, Inc., a Texas corporation, as Parent; Colonial Auto Finance, Inc., an Arkansas corporation, America's Car Mart, Inc., an Arkansas corporation, and Texas Car-Mart, Inc., a Texas corporation, as Borrowers; and certain financial institutions, as Lenders, with BMO Harris Bank, N.A., as Agent, Lead Arranger and Book Manager (Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on October 1, 2019). 10.2 Amendment No. 1 to Third Amended and Restated Loan and Security Agreement dated October 29, 2020, among America's Car-Mart, Inc., a Texas corporation, as Parent; Colonial Auto Finance, Inc., an Arkansas corporation, America's Car Mart, Inc., an Arkansas corporation, and Texas Car-Mart, Inc., a Texas corporation, as Borrowers; and certain financial institutions, as Lenders, with BMO Harris Bank, N.A., as Agent, Lead Arranger and Book Manager (Incorporated by reference to Exhibit 4.2 to the Company's Current Report on Form 8-K filed with the SEC on November 4, 2020). 10.3 Amendment No. 2 to Third Amended and Restated Loan and Security Agreement dated February 10, 2021, among America's Car-Mart, Inc., a Texas corporation, as Parent; Colonial Auto Finance, Inc., an Arkansas corporation, America's Car Mart, Inc., an Arkansas corporation, and Texas Car-Mart, Inc., a Texas corporation, as Borrowers; and certain financial institutions, as Lenders, with BMO Harris Bank, N.A., as Agent, Lead Arranger and Book Manager (Incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the SEC on February 16, 2021). 10.4 Amendment No. 3 to Third Amended and Restated Loan and Security Agreement dated September 29, 2021, among America's Car-Mart, Inc., a Texas corporation, as Parent; Colonial Auto Finance, Inc., an Arkan

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. America's Car-Mart, Inc. Date: July 18, 2024 /s/ Vickie D. Judy Vickie D. Judy Chief Financial Officer (Principal Financial Officer)

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View this 8-K filing on SEC EDGAR