CarMax Increases Loan Commitment
RICHMOND, Va., Feb. 26 -- CarMax, Inc. announced today that the company has increased its credit facility from $200 million to $300 million under the agreement secured by vehicle inventory with DaimlerChrysler Services North America LLC and Toyota Financial Services.
"This expansion in our credit facility provides CarMax the flexibility we need to pursue our growth program and does so at attractive financing rates reflective of the strength of the CarMax balance sheet and the profitability of the CarMax business model," said Austin Ligon, president and chief executive officer of CarMax.
The original credit agreement was executed in May 2002 and included a $100 million revolving loan commitment and a $100 million term loan commitment. The amendment increases the revolving commitment amount to $200 million. The agreement matures in May 2004 and is renewable annually thereafter. Borrowings under the facility were $4.5 million for the revolver and $100 million for the term loan at the end of the third quarter ended November 30, 2002.
CarMax is the nation's leading specialty retailer of used cars. With headquarters in Richmond, Va., CarMax operates 40 used car superstores in 18 markets. CarMax also operates 17 new car franchises, 15 of which are integrated or co-located with its used car superstores. During the 12 months ended with CarMax's third quarter on November 30, 2002, the company sold 185,300 used vehicles, which is 89 percent of the total 207,500 vehicles the company sold during that period. For more information, access the CarMax Web site at http://www.carmax.com/ .
DaimlerChrysler Services North America LLC provides brand specific financing for automotive dealers' inventories and their retail consumers and does business as Chrysler Financial and Mercedes-Benz Credit. As DaimlerChrysler Services Truck Finance, it also finances commercial vehicles for affiliate products such as Freightliner, Sterling and Western Star. The company serves as the headquarters for the operations in the United States, Canada and Mexico and has over 5,000 employees who manage a portfolio of $83 billion with nearly five million contracts. DaimlerChrysler Services North America is a member of the DaimlerChrysler Services Group, headquartered in Berlin, Germany, which operates in 39 countries with an employee base exceeding 10,000 and a global portfolio of EUR 109 billion. DaimlerChrysler Services is one of the leading financial services companies worldwide.
Toyota Financial Services (TFS) is the finance and insurance brand for Toyota in the U.S., offering retail auto financing and leasing through Toyota Motor Credit Corporation (TMCC) and extended service contracts through Toyota Motor Insurance Services (TMIS). Lexus Financial Services is the brand for financial products for Lexus dealers and customers.
TFS is the seventh largest finance company in the United States (according to SNL financial 6/02). TFS currently employs over 2,600 associates nationwide, and has managed assets totaling more than $40 billion. It is part of a worldwide network of comprehensive financial services offered by Toyota Financial Services Corporation, a wholly owned subsidiary of Toyota Motor Corporation.
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