OneWater Marine expands credit line to $500 million, extends to 2023

By Marisa Wong

Los Angeles, Jan. 4 – OneWater Marine Inc. and its subsidiaries entered into a seventh amended and restated inventory financing agreement on Dec. 29 with Wells Fargo Commercial Distribution Finance, LLC as agent to increase the inventory-based credit line and to extend the term, according to a press release and an 8-K filing with the Securities and Exchange Commission.

The facility provides an asset-based borrowing availability of up to $500 million for inventory financing.

Loans may be extended from time to time to enable the company to purchase inventory from certain manufacturers.

The facility expires on Dec. 1, 2023.

Interest is equal to adjusted 30-day average SOFR plus 275 basis points to 500 bps, depending on the age of the inventory. The interest rate for pre-owned boats will be 25 bps above that.

The facility contains financial and non-financial covenants, including provisions that the funded debt to EBITDA ratio must not exceed 2.00 to 1 and that the company’s fixed-charge coverage ratio on a consolidated basis must be at least 1.50 to 1.

OneWater is a recreational boat retailer based in Buford, Ga.

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