S&P boosts RV Retailer Intermediate

S&P said it upgraded RV Retailer Intermediate Holdings LLC’s issuer rating to B+ from B. Concurrently, the agency raised the rating on the upsized term loan to BB- from B+, with a 2 recovery rating. The 2 recovery rating indicates an expectation for substantial (70%-90%; rounded estimate: 75%) recovery in default. RV Retailer plans to raise a $200 million incremental loan, borrowed through subsidiary RVR Dealership Holdings LLC.

“We raised the issuer credit rating to B+ from B because of anticipated near-record-level consumer demand for RVs in 2022 as well as the company's financial policy commitment, despite the leveraging term loan add-on and potential volatility in a dynamic retail environment. Our updated forecast is for consolidated pro forma adjusted gross debt to EBITDA to be in the 2.5x area in 2022, incorporating good retail demand for RVs, the proposed term loan add-on, mortgage debt at RV Retailer Intermediate Real Estate Holdings LLC (PropCo), and EBITDA from the company's acquisition pipeline through the first half of 2022,” S&P said in a press release.

The outlook is stable.

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