CarMax secures $500 million term loan maturing in 2029

CarMax, Inc. (NYSE: KMX) entered into a term loan credit agreement on June 15, 2026, borrowing $500 million through its subsidiary CarMax Auto Superstores, Inc., with MUFG Bank, Ltd. serving as lender and administrative agent.

The term loan facility matures on June 15, 2029. Proceeds were used to pay down borrowings under the company's existing $2.0 billion unsecured revolving credit facility and for general working capital and corporate purposes. The obligations under the agreement are guaranteed by CarMax and certain of its subsidiaries.

Borrowings under the facility carry interest based on either a Daily SOFR rate or a Base Rate, each plus an applicable margin. Interest payments are generally due on the first business day of each calendar month.

The credit agreement includes covenants requiring CarMax to maintain a consolidated net leverage ratio no greater than 3.75 to 1.00 and a consolidated interest and rent coverage ratio of at least 2.00 to 1.00 as of the last day of any fiscal quarter. The agreement also contains customary events of default, a cross-default provision, and a change of control provision. Lenders may declare outstanding obligations immediately due upon an event of default, with automatic acceleration in the event of insolvency or bankruptcy.

You May Also Be Interested In

• CarMax (KMX) PT Raised to $43 at Mizuho
• Senti Biosciences (SNTI) files for 15.97M share offering by selling stockholders
• Kalshi in early talks for IPO - The Information