Cars.com Amends Credit Facility

By Staff Writer June 17, 2020

Cars.com Inc. announced an amendment to its existing credit facility providing the company with increased covenant flexibility through the end of the facility in May 2022.

The amendment includes a covenant holiday with an exemption from the net leverage and interest coverage ratios that addresses the COVID-19 impact through the end of 2020, maximum net leverage of 6.5x effective March 31, 2021, with step downs thereafter. During the covenant holiday period there is a minimum liquidity requirement of $75 million. As of May 31, 2020, the Company's liquidity was approximately $225 million including cash and cash equivalents and availability under the revolving credit facility.

“Our ability to work with our supportive bank group for enhanced covenant flexibility through maturity of the agreement in 2022 is testament to the confidence in our business before the pandemic period and beyond. We would like to thank our lender group for their continued confidence and support as we vie for sector leadership through traffic gains, innovation and customer advocacy,” said Alex Vetter, president and chief executive officer of CARS.

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Last modified on Wednesday, 17 June 2020 16:18

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