Bentonville-based America's Car-Mart will borrow an additional $30 million under an established loan and security agreement as a precautionary measure in the face of the coronavirus outbreak, the company said in a filing Monday with the Securities and Exchange Commission.
Last week, Car-Mart said it created a task force to deal with the effects coronavirus is having on its business and customers. Its stock has plummeted since the outbreak began to take hold in the U.S.
The buy-here pay-here used car dealer said the move will increase its cash position and give it financial flexibility in an uncertain market brought on by the global pandemic. According to the filing, Car-Mart could continue to draw funds as needed and will use the money for working capital, ongoing operations and general corporate purposes.
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Car-Mart shares closed at $39.16, down $1.27 or a little more than 3% in trading Monday on the Nasdaq exchange. Shares have tumbled from a one-year high of $129.70 in late February on coronavirus fears. Broader markets were also down Monday, with the S&P 500 and the Dow Jones Industrial Average both down about 3%.
The car dealer serves consumers who often have little to no credit, a group that experts say is particularly vulnerable to the outbreak economically. Car-Mart has more than 81,000 customers, more than 2,000 employees and operates 145 dealerships in Alabama, Arkansas, Georgia, Indiana, Iowa, Kentucky, Mississippi, Missouri, Oklahoma, Tennessee and Texas.
Business on 03/24/2020