CarParts.com, an e-commerce provider of automotive parts and accessories, has entered into an amended and restated facility in place of its prior credit facility. This agreement provides for a renewed five-year asset-based revolving credit facility (ABL) with JPMorgan Chase Bank, N.A. as administrative agent, sole lead arranger and as a lender.
According to Ryan Lockwood, CarParts.com’s chief financial officer, “Our multi-year asset-based facility provides ample near-term liquidity and financial flexibility to support the continued execution of our company’s strategic plans. We thank our partners at JPMorgan Chase for their continued support and confidence in CarParts.com.”
The credit facility includes an increased aggregate lender commitment of up to $75 million, subject to borrowing base availability based on specified advance rates, eligibility criteria and customary reserves. Further, it allows for an uncommitted ability to increase the ABL by an additional $75 million for a total potential capacity of $150 million, subject to certain terms and conditions. The credit facility is currently undrawn.
CarParts.com recently announced its ninth consecutive quarter of year-over-year sales growth with record first quarter 2022 revenue of $166 million, up 80% on a two-year stack.
“This credit facility gives us a non-dilutive source of capital that will allow us to focus on financially disciplined growth and we are optimistic about our ability to succeed regardless of the economic environment,” added CEO David Meniane. “We strive to be good stewards of shareholder capital and do not take our duties lightly.”
