BENTONVILLE, Ark., Nov. 5, 2010 (GLOBE NEWSWIRE) -- America's Car-Mart, Inc. (Nasdaq:CRMT) (the "Company") announced that the Company and its operating subsidiaries have entered into a Loan and Security Agreement with a group of lenders providing credit facilities totaling $90.0 million to replace the Company's existing credit facilities. The lending group includes Bank of America N.A. ($45.0 million commitment), Bank of Arkansas, N.A. ($30.0 million commitment), Commerce Bank, N.A. ($10.0 million commitment) and Arvest Bank ($5.0 million commitment). Initial proceeds were used to pay off all existing debt under the Company's previous $61.5 million financing package last amended in January 2010, including the remaining balance ($6.3 million) related to a $10.0 million term loan. Total debt outstanding at July 31, 2010, the end of the Company's first fiscal quarter, was $44.3 million.
"We are very pleased with our new loan package and are excited to have Bank of America join our long-time primary lender, Bank of Arkansas. Our lenders are familiar with our industry and we expect that our current lending group will be able to grow with us into the future," said Jeff Williams, Chief Financial Officer of America's Car-Mart. "The loan package contains revolving loan agreements for our operating subsidiaries, tiered pricing (currently at Libor +2.75% or Prime less .25% with no floor), a three year term and a $15 million accordion feature. The Company did incur an early pay-off penalty associated with the term loan which will result in an approximate $.03 charge to fully diluted earnings per share for the current quarter."
About America's Car-Mart
America's Car-Mart, Inc. (the "Company") operates 101 automotive dealerships in eight states and is the largest publicly held automotive retailer 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. For more information, including investor presentations, on America's Car-Mart, please visit our website at www.car-mart.com.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements address the Company's future objectives, plans and goals, as well as the Company's intent, beliefs and current expectations regarding future operating performance, and can generally be identified by words such as "may," "will," "should," "could, "believe," "expect," "anticipate," "intend," "plan," "foresee," and other similar words or phrases. Specific events addressed by these forward-looking statements include, but are not limited to:
- future overall revenue growth;
- the Company's business and growth strategies.
These forward-looking statements are based on the Company's current estimates and assumptions and involve various risks and uncertainties. As a result, you are cautioned that these forward-looking statements are not guarantees of future performance, and that actual results could differ materially from those projected in these forward-looking statements. Factors that may cause actual results to differ materially from the Company's projections include, but are not limited to:
- the availability of credit facilities to support the Company's business;
- the Company's ability to underwrite and collect its loans effectively;
- competition;
- dependence on existing management;
- availability of quality vehicles at prices that will be affordable to customers;
- changes in lending laws or regulations; and
- general economic conditions in the markets in which the Company operates, including but not limited to fluctuations in gas prices, grocery prices and employment levels.
Additionally, risks and uncertainties that may affect future results include those described from time to time in the company's SEC filings. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.
CONTACT: America's Car-Mart Inc. William H. ("Hank") Henderson, CEO (479) 464-9944 Jeffrey A. Williams, CFO (479) 418-8021 T. J. ("Skip") Falgout, III, Chairman (972) 717-3423