S&P rates RV Retailer loan B+

S&P said it assigned RV Retailer Intermediate Holdings LLC’s planned $40 million delayed-draw term loan commitment B+ with 2 recovery ratings. The 2 recovery rating on the loan indicates expectations for substantial (70%-90%; rounded estimate: 75%) recovery in default. The company plans to raise the loan through its borrower subsidiary RVR Dealership Holdings LLC.

RV Retailer also plans to raise an incremental term loan of $180 million and expand the capacity of its mortgage facility to as much as $200 million to finance a pipeline of dealership acquisitions in 2021 and add liquidity for future acquisitions.

S&P affirmed all of RV Retailer’s ratings, including the B issuer credit rating and B+ issue-level rating on the upsized term loan.

Concurrently, S&P revised the outlook to positive from stable.“Despite the proposed debt issuance, we revised the outlook to positive due to ongoing operating outperformance compared to our previous expectations, as well as RV Retailer's updated financial policy, which indicates a lower tolerance for financial risk,” the agency said in a press release.

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