13 Jan, 2022

RV Retailer completes $596M term loan repricing, $200M add-on; terms

RV Retailer LLC has completed the repricing of its $596 million term loan B due February 2028 and the accompanying $200 million fungible add-on to the term loan that will be used to finance the company's near-term acquisition pipeline, according to sources. The transaction lowered the spread on the facility to 375 basis points over the secured overnight financing rate plus a credit spread adjustment. The repriced term loan came at par while the new money add-on priced at an original issue discount of 99.5. Goldman Sachs was sole lead arranger on the deal. The term loan was previously priced at L+400, with a 0.75% Libor floor. RV Retailer, backed by Redwood Capital, is a U.S. recreational vehicle retail company providing new and used RV sales, service and parts, and financial services.

Terms:

Borrower RV Retailer LLC
Issue $596 million repriced term loan B, $200 million fungible add-on term loan
UoP Repricing, M&A
Spread Sofr+CSA+375
Sofr+CSA floor 0.75%
Price 100 (repricing)/99.5 (new money)
Tenor February 2028
YTM 4.58% (repricing)/4.68% (new money)
Four-year yield 4.58% (repricing)/4.72% (new money)
Call protection 101 soft call for 6 months
Corporate ratings B+/B1
Facility ratings BB-/B1
Recovery ratings 2
Financial covenants None
Arrangers GS
Admin agent GS
Px Talk Sofr+CSA+350-375/0.75%/100 (repricing)/99.5 (new money)
Sponsor Redwood Capital
Notes CSA: 10/15/25 (1-month, 3-month, 6-month).