CarMax Completes New Credit Facility
RICHMOND, Va., Aug. 26, 2005 -- CarMax, Inc. today announced that it has closed a new revolving credit facility providing for aggregate borrowings of up to $450 million. The new facility has a four- year term and is secured by the company's vehicle inventory. Bank of America N.A. is the administrative agent and Banc of America Securities LLC acted as the lead arranger for the new facility, which replaces a $300 million term loan and revolving credit facility that was scheduled to expire in May 2006.
"This new credit facility provides CarMax the financial flexibility we need to execute our growth program, and does so at attractive rates," said Keith Browning, executive vice president and chief financial officer of CarMax.
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 May 31, 2005, the company sold 264,958 used cars, which is 93 percent of the total 285,354 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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