Business Context and Reporting Period
Company: CARMAX, INC.
Filing Type: Form 8-K (Current Report)
Date of Report: July 17, 2008
Event: Entry into a Material Definitive Agreement (Amendment No. 2 to Credit Agreement).
Key Financial Metrics
This filing reports on debt facility terms rather than operating performance metrics such as revenue, profit, or cash flow.
- Revolving Credit Facility Capacity: Increased from $500 million to $700 million.
- Outstanding Borrowings (as of July 17, 2008): Approximately $238 million.
- Maturity Date: December 8, 2011.
- Administrative Agent: Bank of America, N.A.
Material Changes Versus Prior Period
The primary material change is the amendment of the existing Credit Agreement dated August 24, 2005 (as previously amended in December 2006). Key modifications include:
- Capacity Expansion: Aggregate borrowings available increased by $200 million.
- Interest Rate Adjustments: A new definition of "Applicable Rate" was adopted, increasing the per annum rate for Eurodollar Rate Loans, Letter of Credit Fees, and Commitment Fees.
- Payment Timing: Amendments were made to the timing for the payment of Swing Line Loans and New Vehicle Swing Line Loans.
- New Lenders: Bank of the West and Barclays Capital joined the Credit Agreement as Lenders.
Guidance, Outlook, and Risks
The filing does not provide forward-looking guidance, management commentary on future operations, or specific risk factors beyond the terms of the amended agreement. The document notes that lenders provide additional services including cash management, asset-backed securitization, retail installment financing, and derivative transactions (interest rate swaps).
Important Facts for Investor Verification
- Verify the specific impact of the increased "Applicable Rate" on future interest expense.
- Confirm the utilization rate of the new $700 million facility relative to the $238 million outstanding balance.
- Review the full text of Exhibit 10.1 for detailed covenants and fee structures associated with the new lenders and rate adjustments.
- Note that the filing does not contain revenue or earnings data; refer to the most recent 10-Q or 10-K for operational performance.