CarMax to Arrange New Credit Facility
RICHMOND, Va., May 20, 2005 -- CarMax, Inc. today announced that it has signed a commitment letter with Bank of America N.A. and Banc of America Securities LLC to arrange a new $350 million to $400 million credit facility in which Bank of America N.A. has committed to lend up to $150 million. CarMax also announced that it has mutually agreed with Daimler Chrysler Services North America, LLC and Toyota Motor Credit Corporation to allow the company's existing $300 million credit agreement to terminate no later than the scheduled expiration in May 2006. Without this action, the current credit agreement would have renewed automatically for successive one-year terms.
"We are pleased to have taken this first step in arranging new financing for CarMax that should provide additional financial flexibility and more favorable terms," said Keith Browning, executive vice president and chief financial officer of CarMax.
The company expects to close on the new credit facility during its second fiscal quarter ending August 31, 2005. Closing is subject to customary conditions, execution of a definitive credit agreement, and the completion of the loan syndication.
About CarMax
CarMax, a Fortune 500 company and one of the Fortune 2005 "100 Best Companies to Work For," is the nation's largest retailer of used cars. Headquartered in Richmond, Va., CarMax currently operates 62 used car superstores in 28 markets. CarMax also operates seven new car franchises, all of which are integrated or co-located with its used car superstores. During the twelve month period ended February 28, 2005, the company retailed 253,168 used cars, which is 92 percent of the total 273,804 vehicles the company retailed during that period. For more information, access the CarMax website at http://www.carmax.com/.
Forward-Looking Statements
The company cautions readers that the statements contained herein regarding the company's future business plans, opportunities, or prospects are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon management's current knowledge and assumptions about future events and involve risks and uncertainties that could cause actual results to differ materially from anticipated results. For more details on factors that could affect expectations, see the company's Annual Report on Form 10-K for the fiscal year ended February 28, 2005, and its quarterly or current reports as filed with or furnished to the Securities and Exchange Commission.
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