Lazy Days Agrees to Debt Restructuring Plan

Lazydays logoLazy Days’ RV Center Inc. today (Sept. 4) announced it has entered
into an agreement in principle with its floorplan lenders and an ad hoc
committee representing about 82% of its bondholders by value on a plan
to restructure its debt.

If implemented as proposed, the restructuring plan will eliminate all of
the company’s $137 million of debt (other than its ongoing floorplan
credit facility), reducing its annual cash interest costs by about $16.2
million through the elimination of bond interest payments, according to
a news release.

The company’s ongoing cash interest expense will be about $3
million incurred on its vehicle financing line, representing a reduction
of 84% in annual cash interest expense from a total of $19.2 million
before the restructuring.

“We believe the plan we are announcing today will help preserve and
enhance our business for many years to come and are pleased to already
have received support for this plan from a significant majority of our
bondholders and our floor plan lenders,” said John Horton, president and
CEO of the Seffner, Fla.-based RV dealership.

“This debt restructuring plan will provide us with greater
financial flexibility and more cash to invest in our business. It will
allow us to continue to offer, uninterrupted, our customers the same
great selection in RVs, the same high level of service, and the same
unique experience they have come to expect. As the largest single-site
recreational vehicle retailer in the world, we are in a strong position
to withstand the turbulence in the market and to take full advantage of
our leadership position as the market recovers.”

Support for the debt restructuring plan is currently being
solicited by the company from its broader bondholder base. If approvals
are received from the requisite percentages of the bondholders, as is
expected, it is anticipated that the restructuring will be implemented
through a so-called “prepackaged” Chapter 11 proceeding.

A prepackaged Chapter 11 is designed to be completed promptly,
within several months of filing, with minimal disruption to the
company’s business and without affecting services to the Company’s
customers.

During the restructuring process, Lazydays will remain open for
business as usual and will continue to serve customers in the normal
course.

The company plans to move quickly through the reorganization
process with its same commitment to professionalism, customer service
and quality, Horton said. Customer benefits will remain unchanged.

Under the proposed plan, all suppliers will be paid in full — or “unimpaired.”

The company has adequate cash on hand to satisfy obligations
associated with conducting business in the ordinary course. In addition,
the company’s floorplan lenders, Bank of America and Key Bank, have
agreed to provide interim funding through the company’s credit facility
to support the acquisition of inventory during the restructuring period
and have also consented to an amended floor plan agreement that will be
effective on confirmation of the plan. The ad hoc committee of
bondholders has agreed to invest $10 million into the reorganized Lazy
Days.

The company’s legal adviser is Kirkland & Ellis LLP and its
financial adviser is Macquarie Capital (USA) Inc. For more information
on the restructuring, visit BetterLazydays.com. By RV Business

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