Lazydays completes transactions to boost liquidity, reduce debt

TAMPA - Lazydays Holdings, Inc. (NASDAQ:GORV) has executed amendments and waivers with its credit facility lender syndicate led by M&T Bank and its mortgage lender, an affiliate of Coliseum Capital Management, the company announced Tuesday.

The RV retailer will retain approximately $14 million in proceeds from recent divestitures of non-core dealerships and associated real estate, while repaying about $15 million in non-floorplan indebtedness. This reduces the company’s non-floorplan debt to approximately $44 million and lowers interest expenses - a crucial step given the company’s current debt-to-equity ratio of 4.36x and negative EBITDA of $22.9 million in the last twelve months.

The transactions involve four dealership divestitures: Mesa, Arizona (closed May 30); Fort Pierce, Florida with related real estate (closed June 6); Longmont, Colorado (closed June 13); and Las Vegas, Nevada with related real estate (expected to close this week).

"We are pleased to have reached these agreements with our lenders, which collectively provide Lazydays with a meaningfully enhanced liquidity position and greater flexibility to advance our turnaround strategy," said Ron Fleming, CEO of Lazydays, in the press release statement.

Stoel Rives LLP served as legal counsel, while Miller Buckfire, a Stifel Company, and CR3 Partners acted as financial advisors to Lazydays in connection with these transactions.

Lazydays, founded in 1976, sells recreational vehicles and provides related services. The company has been implementing a strategy focused on revitalizing core operations, streamlining its footprint, and reducing debt through non-core asset sales.

Further details regarding the credit agreement and mortgage amendments are available in the company’s Form 8-K filed with the SEC today, according to the announcement. For deeper insights into Lazydays’ financial health and detailed metrics, InvestingPro subscribers have access to over 10 additional ProTips and comprehensive financial analysis tools.

In other recent news, Lazydays Holdings, Inc. reported a narrower first-quarter loss, with revenue surpassing analyst expectations. The company posted a net loss of $9.5 million, or $0.09 per share, compared to a loss of $22.0 million, or $1.67 per share, in the same period last year. Revenue reached $165.8 million, down from $270.1 million year-over-year, yet still above analyst projections. Lazydays noted improvements in gross profit and margins across all product lines as part of its ongoing turnaround plan. Additionally, the company completed the divestiture of five dealership locations, reducing its debt by about $145 million. In leadership changes, Lazydays appointed Kyle Richter as the new Chief Administrative Officer, bringing over two decades of experience to the role. The company also announced the resignations of Board members Jordan Gnat and Suzanne Tager, with no immediate plans to fill these vacancies. These developments were disclosed in a recent SEC filing and press release.

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