RideNow locks in $220M debt refinancing to push maturities to 2031
What's the deal? RideNow GroupDealroom has a profile for this one. Try Dealroom →, the Nasdaq-listed powersports dealership operator, has raised $220 million in senior secured term loans from affiliates of Centerbridge PartnersDealroom has a profile for this one. Try Dealroom →. The proceeds refinanced in full the company's existing term loan with Oaktree Fund AdministrationDealroom has a profile for this one. Try Dealroom →, which was terminated at closing.
The terms: The new loans bear interest at Adjusted Term SOFR plus 8.375% per annum and mature on September 25, 2031. That pushes RideNow's debt maturity out by years and clears near-term repayment risk.
Why now? Chairman and chief executive officer Michael Quartieri called the deal "the culmination of a transformational quarter." The company adopted Clear Price, its new Federal Trade Commission compliant pricing model, which it said dented August results, and completed a tuck-in acquisition of a Can-AmDealroom has a profile for this one. Try Dealroom → and Sea-DooDealroom has a profile for this one. Try Dealroom → dealer at its new Tallahassee location.
What's next? RideNow is in advanced discussions with Wells Fargo BankDealroom has a profile for this one. Try Dealroom → for a proposed $50 million senior secured asset-backed lending (ABL) facility, priced at Daily Simple SOFR plus 2.25% per annum. It plans to use part of the proceeds to pay down some of the $220 million term loan balance.
The details: The ABL facility would be secured by a first-priority interest in working capital assets and inventory, replacing an existing used-vehicle floorplan facility with Wells Fargo. Terms remain subject to final credit approval and definitive documentation.
The signal: The refinancing swaps a costlier term loan structure for extended maturities, with a cheaper ABL layer designed to lower overall borrowing costs. For RideNow, a stronger balance sheet is the foundation for pursuing further dealership acquisitions.
Read more: finance.yahoo.com
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