In connection with this transaction, the Company fully repaid the outstanding balance under its asset-backed line of credit (ABL), simplifying its balance sheet and creating a more flexible and scalable capital structure to support long-term growth opportunities and general corporate purposes.
The new term loan matures on October 30, 2030, and bears interest at SOFR plus 7.50% per annum. The loan is secured and subject to customary financial and operational covenants. In connection with the loan, the Company also issued Silver Point Capital warrants to purchase up to 10% of the Company's fully diluted outstanding shares of common stock at current market price. The warrant expires on October 30, 2031, and includes customary registration rights for the underlying shares.
"We are excited to complete this transaction at a time of uncertainty in the market, which we believe demonstrates the fundamental strength of our business and our ability to execute on our long-term capital strategy. By replacing our ABL facility with a new term loan, we have strengthened our financial profile and added new capital that will provide flexibility and agility for our originations and operations. This action aligns with our multi-year efforts to improve Car-Mart's platform by reinforcing our core strengths, adapting to evolving market dynamics, and enhancing our balance sheet," said Douglas Campbell, ...
