America’s Car-Mart, Inc. has entered into a Second Amended and Restated Loan and Security Agreement (“Agreement”) with a group of lenders effective December 12, 2016. The Agreement amends and restates the Company’s Amended and Restated Loan and Security Agreement dated March 9, 2012, as amended on September 30, 2012, February 4, 2013, June 24, 2013, February 13, 2014 and October 8, 2014, respectively (“Existing Loan Agreement”), the terms of which have been previously disclosed by the Company in its Current Reports on Form 8-K. The lending group includes Bank of America, N.A. ($96 million commitment, up from $79.75 million), BOKF, NA d/b/a Bank of Arkansas ($44 million commitment, up from $40 million), Commerce Bank ($16 million commitment, up from $15 million), First Tennessee Bank, N.A. ($25 million commitment, up from $20 million) and Arvest Bank ($19 million commitment, up from $17.75 million). Bank of America, N.A. serves as the agent for the lenders, lead arranger and book manager for the amended and restated credit facilities.

The Agreement extends the term of the Company’s revolving credit facilities to December 12, 2019 and increases the total permitted borrowings from $172.5 million to $200 million.  The Agreement also includes an accordion feature allowing for up to an additional $50 million in total commitments, subject to lender approval and/or successful syndication. The Agreement provides for three pricing tiers (down from four) for determining the applicable interest rate, based on the Company’s consolidated leverage ratio for the preceding fiscal quarter. The Agreement also requires the Company to pay a monthly fee to the lenders of .25% times the amount of unused credit commitments. Borrowings are secured primarily by accounts receivable and inventory of the Company’s respective subsidiaries. The Agreement increases the advance rate on accounts receivable with 37-42 month terms from 50% to 55%, and the advance rate on accounts receivable with 43-60 month terms from 45% to 50%.  The Agreement also reset the aggregate limit on the repurchase of Company stock to $40 million beginning December 12, 2016.

“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 October 31, 2016 (53.1% and 26.3%, respectively) are strong and a reflection of our focus on cash flows and customer success,” said Jeff Williams, President of America’s Car-Mart, Inc. “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, Inc. (the “Company”) operates 143 automotive dealerships in eleven states and is one of the largest publicly held automotive retailers in the United States focused exclusively on the “Integrated Auto Sales and Finance” segment of the used car market.  The Company emphasizes superior customer service and the building of strong personal relationships with its customers. The Company operates its dealerships primarily in small cities throughout the South-Central United States selling quality used vehicles and providing financing for substantially all of its customers.