RideNow Group, Inc. entered into a senior secured term loan credit agreement on September 25, 2026, with affiliates of Centerbridge Partners, L.P. and Alter Domus (US) LLC. The agreement provides for term loans of $220 million, which were funded on the closing date to fully refinance an existing credit agreement dated August 31, 2021.
The term loans are set to mature on September 25, 2031. Interest rates are determined at the company's option, either as a Base Rate plus 7.375% per annum or as the Adjusted Term SOFR, subject to a 3.00% floor, plus 8.375% per annum. The loan agreement includes mandatory prepayment provisions for events such as asset sales, casualty events, and certain borrowings under an asset-based facility. It also imposes financial covenants, including a Consolidated First Lien Net Leverage Ratio that must not exceed 4.80 to 1.00, stepping down to 3.25 to 1.00 by the second quarter of 2029. Additionally, the company must maintain a minimum liquidity of $15 million tested monthly.
In connection with the refinancing, the company amended and restated three unsecured promissory notes originally issued on August 25, 2025, with three new Amended and Restated Unsecured Promissory Notes. Each note has a principal amount of $3,333,334, for an aggregate principal of approximately $10 million. These notes are held by SH Capital Partners, L.P., Mark Tkach, and Face Canyon LLC, each affiliated with a director or founder of the company. The notes bear interest at 13.0% per annum, with interest payable in-kind, and mature on August 31, 2028.
The company is currently in advanced discussions with Wells Fargo Bank, National Association, regarding a $50 million senior secured asset-based revolving credit facility. The facility is expected to be available to wholly-owned operating subsidiaries and secured by a first-priority interest in working capital assets and a second-priority interest in floor plan collateral. The company expects to use the proceeds to refinance a portion of the term loans and for working capital purposes. However, there is no binding commitment from Wells Fargo, and the facility is subject to final credit approval and the satisfaction of customary closing conditions.
