RideNow Group, Inc. Announces $220 Million Senior Secured Term Loan Refinancing; In Advanced Discussions for $50 Million Asset Backed Lending (ABL) Facility

Rhea-AI Summary

RideNow Group (RDNW) entered a $220 million senior secured term loan agreement with Centerbridge Partners affiliates to refinance existing debt.

The loans mature September 25, 2031, and bear interest at Adjusted Term SOFR plus 8.375% annually. Proceeds fully refinanced RideNow's Oaktree term loan agreement, which ended on the closing date. RideNow is also in advanced discussions with Wells Fargo about a proposed $50 million asset-backed lending (ABL) facility at Daily Simple SOFR plus 2.25% annually. It expects to use some ABL proceeds to reduce the new term loan. The facility remains subject to final credit approval and loan documentation.

RideNow introduced its Clear Price pricing model during the quarter and said the change hurt August results in the short term. It also acquired a Can-Am and Sea Doo dealer for its new Tallahassee location at the end of August.

Positive

• $220 million term loan proceeds fully refinanced the existing Oaktree term loan.
• New term loans mature September 25, 2031.
• RideNow is discussing a proposed $50 million ABL facility with Wells Fargo.
• RideNow intends the proposed ABL facility to provide lower-cost debt and expects to use some proceeds to reduce the term loan.
• Can-Am and Sea Doo dealer acquisition was completed for the new Tallahassee location at the end of August.
• Clear Price pricing model was introduced during the quarter.

Negative

• $220 million senior secured term loans bear interest at Adjusted Term SOFR plus 8.375% annually.
• Proposed ABL facility remains subject to final credit approval, definitive loan documentation and closing conditions.
• Expected ABL borrowings would bear interest at Daily Simple SOFR plus 2.25% annually.
• Proposed ABL facility is expected to have first-priority security over certain working capital assets and inventory.
• August results were hurt in the short term by the pricing change, RideNow said.

News Explained

RideNow’s proposed $50 million ABL remains subject to final credit approval and definitive documentation; if completed, it is expected to replace the company’s existing Wells Fargo floorplan facility and be secured by a first-priority interest in certain working-capital assets and inventory.

Argus Sep 28 session 9 alerts

+2.31% close to close 2.4x rel. volume Open Argus

Details

News Market Reaction – RDNW

+10.1% Peak in 38 min

$271.48M Mkt Cap at Peak Alert

On Sep 28, the day this news came out, RDNW closed 2.31% above the previous close. Argus tracked a peak move of +10.1% during that session. Our momentum scanner recorded 9 alerts for this stock that day. That session’s volume was 2.4x the stock’s average daily volume.

Data tracked by StockTitan Argus for the Sep 28 session.

Key Figures

Term loan principal: $220 million Term loan interest rate: Adjusted Term SOFR + 8.375% per annum Term loan maturity: September 25, 2031 +2 more

Term loan principal

$220 million

New senior secured term loan

Term loan interest rate

Adjusted Term SOFR + 8.375% per annum

New senior secured term loan

Term loan maturity

September 25, 2031

New senior secured term loan

Proposed ABL facility

$50 million

Advanced discussions; subject to final approval and definitive documentation

Proposed ABL interest rate

Daily Simple SOFR + 2.25% per annum

Proposed ABL facility

Historical Context

1 past event · Latest: Aug 11

1 event

1. Aug 11

   Earnings report

   24h Move

   -2.2%

   Disclosed refinancing milestones for the September 2027 term loan and first-half operating cash outflow.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted term sofr, daily simple sofr, asset backed lending (abl), first-priority security interest

4 terms

adjusted term sofr financial

"bearing interest at Adjusted Term SOFR, plus 8.375% per annum"

Adjusted term SOFR is a forward‑looking interest benchmark based on short‑term overnight Treasury repo rates, with a small extra amount added to reflect differences from legacy rates. Think of it as a quoted price that has been nudged to make payments comparable to older benchmarks; it matters to investors because it directly influences borrowing costs, bond yields and cash‑flow forecasts, affecting valuations and hedging outcomes.

daily simple sofr financial

"expected to bear interest at Daily Simple SOFR plus 2.25% per annum"

Daily simple SOFR is a widely published short-term interest benchmark based on actual overnight secured borrowing costs in the U.S. Treasury repo market; the “daily simple” version means the single-day rate is applied directly to calculate interest for that day rather than being compounded over multiple days. Investors care because it sets the interest paid or earned on floating-rate loans, bonds and cash products, so small daily changes change cash flows, borrowing costs and valuations—think of it as the daily retail price that determines what you pay or receive for short-term money.

asset backed lending (abl) financial

"a proposed $50 million senior secured ABL credit facility"

A form of business lending where a company borrows money using specific assets—such as inventory, accounts receivable, equipment, or real estate—as collateral. Lenders set the loan size and terms based mainly on the value and quality of those assets rather than the borrower’s overall credit, so the loan behaves like a mortgage or pawnshop for company assets. Investors care because ABL affects a company’s available cash, borrowing flexibility, and how much lenders can recover if the company defaults.

first-priority security interest financial

"secured by a first-priority security interest in certain working capital assets and inventory"

A first-priority security interest is a lender’s legal claim that is at the front of the line to be paid from specific collateral if a borrower defaults or goes bankrupt. Investors care because holding first priority means a higher chance of recovering money compared with lower-ranked creditors, similar to having the first ticket in a queue: you get served before others and face less risk of loss if the asset’s value is limited.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Refinancing Extends Debt Maturity to 2031, Optimizes Capital Structure

CHANDLER, Ariz., Sept. 28, 2026 /PRNewswire/ -- RideNow Group, Inc. (NASDAQ: RDNW) today announced that it has entered into a new term loan credit agreement with affiliates of Centerbridge Partners, L.P. providing for $220 million in senior secured term loans bearing interest at Adjusted Term SOFR, plus 8.375% per annum. The proceeds of the term loans were used to refinance in full the Company's existing term loan credit agreement with Oaktree Fund Administration, LLC, which was terminated on the closing date. The new term loans mature on September 25, 2031.

"Securing this new term loan facility is a direct reflection of the underlying strength and trajectory of RideNow," said Michael Quartieri, Chairman, Chief Executive Officer, and President. "Extending our debt maturity to 2031 eliminates near-term maturity risks and significantly enhances our financial flexibility. Further, the addition of an ABL facility with Wells Fargo in the near term will provide the Company with additional financial flexibility as we move forward. This transaction is the culmination of a transformational quarter for RideNow as we also introduced Clear Price, our new FTC compliant pricing model during the quarter. As a leader in the powersports dealership industry, we were one of the early adopters of FTC compliant pricing, which had a short-term negative impact on our August results. With a stronger balance sheet now locked in and our adoption of FTC compliant pricing behind us, the entire RideNow team remains focused on driving operational excellence and executing our long-term growth initiatives. To that end, we also completed the tuck-in acquisition of a Can-Am and Sea Doo dealer into our new Tallahassee location at the end of August."

In tandem with the term loan refinancing, RideNow is in advanced discussions with Wells Fargo Bank, N.A. regarding a proposed $50 million senior secured ABL credit facility. Borrowings under the proposed ABL Facility are expected to bear interest at Daily Simple SOFR plus 2.25% per annum. The Company expects to utilize a portion of the proceeds from the ABL Facility to pay down a portion of the $220 million term loan balance, subject to terms outlined in the term loan credit agreement. The ABL Facility is intended to provide to RideNow access to debt with lower cost to optimize its capital structure.

The ABL Facility is expected to be secured by a first-priority security interest in certain working capital assets and inventory. Additionally, the ABL Facility is expected to replace the used floorplan facility currently in place with Wells Fargo. Terms of the ABL Facility remain subject to final credit approval, negotiation and execution of definitive loan documentation, and customary closing conditions.

About RideNow Group, Inc.

RideNow Group, Inc. (NASDAQ: RDNW) is a powersports dealership group. We believe our powersports business is the largest powersports retail group in the United States offering a wide selection of new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. We also offer parts, apparel, accessories, finance & insurance products and services, and aftermarket products from a wide range of manufacturers. We are one of the largest purchasers of pre-owned powersports vehicles in the United States and utilize our proprietary RideNow Cash Offer tool to acquire vehicles directly from consumers. To learn more, please visit us online at https:// www.ridenow.com.

Forward-Looking Statements

This press release contains "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995, which statements may be identified by words such as "expects," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Forward-looking statements contained in this press release include, but are not limited to, statements about our future results of operations and financial position, business strategy and plans, the anticipated execution and terms of the ABL facility, the expected reduction in overall interest rates and cost of capital, our ability to maintain adequate inventory levels to meet customer demand, industry and market conditions, the sufficiency of our liquidity and capital resources, our ability to refinance or repay our indebtedness, and our objectives for future operations. Our actual future results and trends may differ materially depending on a variety of factors, including, but not limited to, the factors listed under the heading "Forward-Looking Statements" and "Risk Factors" in the Company's SEC filings, as may be updated and amended from time to time. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Investor Inquiries:
RideNow Group, Inc.
investors@ridenow.com

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SOURCE RideNow Group, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

When do RideNow's new term loans mature, and what is their interest rate?

RideNow's new term loans mature September 25, 2031, and bear interest at Adjusted Term SOFR plus 8.375% per annum.

What is the status of RideNow's proposed Wells Fargo ABL facility?

RideNow is in advanced discussions with Wells Fargo about a proposed $50 million facility. Its terms remain subject to final credit approval, negotiation and execution of definitive loan documentation, and customary closing conditions.

What would secure RideNow's proposed ABL facility, and what would it replace?

The proposed facility is expected to be secured by a first-priority security interest in certain working capital assets and inventory. It is also expected to replace RideNow's existing used floorplan facility with Wells Fargo.