AutoNation, Inc. AN

CarMax just posted a quarter strong enough to move rivals like Carvana and Lithia Motors higher, but skeptics are questioning whether the real driver was shoppers returning or a set of one-time finance items that may not repeat.

AutoNation, Inc. recently amended and restated its unsecured credit agreement with JPMorgan Chase and other lenders, lifting its revolving credit facility commitment from US$1.90 billion to US$2.00 billion, expanding the accordion feature to as much as US$1.00 billion, and extending the maturity to September 14, 2031. This expanded, longer-dated facility, with the same or lower fees and margins and unchanged leverage and interest coverage covenants, could meaningfully increase AutoNation’s...