Moody’s rates RVR Dealership, loan B2

Moody’s Investors Service said it assigned first-time ratings to RVR Dealership Holdings, LLC, including a B2 corporate family rating and a B2-PD probability of default rating. Moody’s assigned a B2 rating to RVR’s proposed $420 million senior secured term loan. The outlook is stable.

“Ratings reflect RV Retailer’s solid credit metrics with Moody’s pro forma leverage as of LTM Sept. 30, 2020 of approximately 4.3 times, flexible business model with multiple sources of revenue and significant portion of variability in the cost structure, a revenue mix heavily-weighted towards lower-priced towables, with the majority of gross profit from less cyclical product offerings, strong presence in popular RV markets and good liquidity,” stated Charlie O’Shea, a Moody’s vice president, in a press release.

Proceeds will be used with balance sheet cash to fund RVR’s near-term acquisition pipeline, pay a dividend to shareholders and refinance debt.

The stable outlook reflects the view the recent strong industry cycle driven by a shift in consumer spending will continue into the first half of next year. More normalized consumer spending patterns will return in the second half of the year, which may result in lower demand trends for RVs, the agency said.

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