MarineMax completes amendment to credit and security agreement

Clearwater, Fla. MarineMax Inc. said Tuesday it completed an amendment to its credit and security facility with seven lenders.

“The amendment was structured to help us achieve our objective of reducing our inventory and streamlining our cost structure, which will best position MarineMax as industry conditions improve," EVP, CFO  and secretary Michael H. McLamb said.

MarineMax paid about $1.3 million to the lenders for the amendment's execution. The company and many others in the recreational boating sector have come under pressure as consumers tighten their discretionary spending because of economic and job worries.

The amendment gives MarineMax a credit line of up to $300 million that drops to $250 million by Sept. 30, and $175 million by Sept. 30, 2010. Incremental declines in the credit line occur between those dates.

In addition, the amendment allows a loss before interest, taxes, depreciation and amortization of as much as $40 million in fiscal 2009, allowing for adjustments for store closing costs and losses on defunct brands. It also raises the allowable loss for parts of fiscal 2010.