The refinancing extends maturity to 2031 and brings in Centerbridge as lead lender, likely at higher cost (SOFR + 8.375% with a 3% floor). Monitor for execution of the $50 million ABL facility with Wells Fargo, which would provide additional liquidity and trigger a mandatory prepayment of up to $20 million of the term loans. The insider note amendments preserve existing subordinated debt structure without changing economic terms.
Price Chart
Executive Summary
RideNow Group entered into a $220 million senior secured term loan credit agreement with Centerbridge affiliates on September 25, 2026, refinancing its existing Oaktree credit facility. The new loans mature September 25, 2031, bear interest at SOFR + 8.375% (or Base Rate + 7.375%), and carry a 3.00% interest rate floor. Concurrently, the company amended and restated three unsecured promissory notes totaling ~$10 million with insider lenders (SH Capital Partners, Mark Tkach, Face Canyon LLC) at 13% PIK interest, maturing August 31, 2028. The company also disclosed advanced discussions for a $50 million ABL facility with Wells Fargo to partially refinance the term loans.
Key Financial Metrics
Key Facts
- $220 million senior secured term loan facility from Centerbridge affiliates, funded on September 25, 2026
- Term loans mature September 25, 2031; interest rate is SOFR + 8.375% (Base Rate + 7.375%) with a 3.00% floor
- Existing $220 million Oaktree credit facility was fully repaid and terminated on the closing date
- Three amended and restated unsecured promissory notes totaling ~$10 million aggregate principal with insider lenders at 13% PIK interest, maturing August 31, 2028
- Company in advanced discussions with Wells Fargo for a $50 million ABL facility to partially refinance the term loans; no binding commitment yet
- Financial covenants: Consolidated First Lien Net Leverage Ratio starting at 4.75x and stepping down to 3.25x; minimum Liquidity of $15 million tested monthly
- Non-call period of 24 months with make-whole premium; 2.00% prepayment premium from months 24-36 months
Financial Impact
$220 million new term loan refinances existing debt; $10 million insider notes amended and restated at 13% PIK; potential $50 million ABL facility under discussion
Risk Factors
- High all-in interest cost (SOFR + 8.375% with 3% floor) could pressure cash flow
- ABL facility with Wells Fargo is not yet committed; failure to secure it would leave less liquidity
- Leverage covenant steps down to 3.25x by Q2 2029, requiring sustained EBITDA growth
- Non-call period and make-whole premium limits refinancing optionality for 24 months
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-063662 |
| Exhibit: exhibit10_2-ridenowxarsubo.htm | 0001628280-26-063662 |
| Exhibit: exhibit10_3-ridenowxarsubo.htm | 0001628280-26-063662 |
| Exhibit: exhibit104-ridenowxarsubor.htm | 0001628280-26-063662 |
| Document: 0001628280-26-063662-index-headers.html | 0001628280-26-063662 |
| Document: 0001628280-26-063662-index.html | 0001628280-26-063662 |
| Document: 0001628280-26-063662.txt | 0001628280-26-063662 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 28, 2026 28d ago | 8-K | $6.20 $5.08 | ▼ −18.06% | ▼ −18.03% | $5.08 (−18.06%) |
Aug 11, 2026 10w ago | Press Release | $6.36 $5.57 | ▼ −12.42% | ▼ −10.52% | $5.08 (−20.13%) |
Jun 11, 2026 19w ago | 8-K | $7.85 $5.88 | ▼ −25.10% | ▼ −26.88% | $5.08 (−35.29%) |
May 18, 2026 23w ago | 8-K | $7.50 $7.55 | ▲ +0.67% | ▼ −0.91% | $5.08 (−32.27%) |
May 14, 2026 23w ago | 8-K | $7.91 $7.81 | ▼ −1.26% | ▼ −3.38% | $5.08 (−35.78%) |
US Market Status
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