OneWater Marine, a recreational boat retailer, entered into a seventh amended and restated inventory financing facility with Wells Fargo Commercial Distribution Finance to increase the inventory-based line of credit to $500 million from $392.5 million and extend the term through Dec. 1, 2023.

“OneWater has been scaling at an exhilarating pace, resulting from continued levels of consumer demand and our ability to capitalize on the robust M&A market across the marine industry,” Austin Singleton, CEO of OneWater Marine, said. “The expansion of our financing flexibility enables us to continue executing on our growth strategy, advance our leadership position in the industry and return value to our shareholders.”

The amended facility is expected to provide sufficient inventory financing capacity for the next two years. Borrowings under the facility bear interest at the adjusted 30-day average SOFR plus a spread based on type and inventory aging. The facility also includes certain financial and non-financial covenants consistent with the previous facility, including provisions that the funded debt to EBITDA ratio must not exceed 2:1 and that the company’s fixed charge coverage ratio on a consolidated basis must be at least 1:1.5.