RumbleOn closes $400 million credit facility for RideNow merger

Chicago, Sept. 7 – RumbleOn, Inc. closed on a new $400 million five-year credit facility with Oaktree Fund Administration, LLC as administrative agent and collateral agent on Aug. 31 to fund its acquisition of RideNow, according to an 8-K filed with the Securities and Exchange Commission.

The credit agreement comprises a $280 million term loan and a $120 million delayed-draw term loan.

Proceeds of the term loan were used, with cash, to fund the acquisition. The delayed-draw part of the loan will be used to finance acquisitions permitted by the credit agreement and similar investments or “earn-outs” entered into in connection with the acquisitions.

The delayed-draw loan is available six months after closing until 18 months after closing.

The interest rate is Libor plus 825 basis points, with a 1% Libor floor.

Each quarter, the company must make amortization payments of 0.25% of the principal amount of the loan.

The loan can be prepaid at the option of the borrower, but with a premium for the first year after closing. Mandatory prepayments are required with excess cash flow.

Terms include that the consolidated total net leverage ratio not exceed 4.25x, the consolidated senior secured net leverage ratio should be at least 3.75x and liquidity should be at least $25 million.

Oaktree was the lead arranger.

RumbleOn provides an e-commerce platform that facilitates consumers and dealers to buy, sell, trade and finance pre-owned recreation vehicles. RideNow is the nation’s largest powersports retailer.

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