RideNow Group, Inc. Enters $220M Term Loan; $50M ABL Talks

What Happened
RideNow Group, Inc. announced on September 25, 2026 that it entered into a Term Loan Credit Agreement providing $220 million of senior secured term loans (funded on the Closing Date) to refinance its existing credit agreement dated August 31, 2021 (terminated on the Closing Date). The Term Loans mature on September 25, 2031, are guaranteed by certain subsidiaries and secured by a first‑priority lien on substantially all assets (subject to exceptions, including floor plan financing). Interest is either Base Rate + 7.375% or Adjusted Term SOFR (floor 3.00%) + 8.375%. The Company also amended and restated three unsecured promissory notes (aggregate principal ≈ $10.0M) with affiliates of a director/founder; those A&R Notes bear 13.0% interest (15.0% after maturity), are PIK (interest capitalized), mature August 31, 2028, are subordinated to the senior debt, and may be prepaid without penalty. Separately, RideNow said it is in advanced discussions with Wells Fargo on a $50 million asset‑based revolving credit (ABL) expected to be used, among other things, to refinance part of the Term Loans.

Key Details

• Term Loan amount: $220,000,000; closing date September 25, 2026; maturity September 25, 2031.
• Interest: option of Base Rate + 7.375% or Adjusted Term SOFR (≥3.00%) + 8.375%.
• Covenants & testing: Consolidated First Lien Net Leverage Ratio ≤ 4.80x (step down to 3.25x beginning Q2 2029); minimum Liquidity ≥ $15.0M, tested monthly.
• A&R Notes: three notes totaling ≈ $10.0M (each $3,333,334), 13% interest (PIK), mature 8/31/2028, unsecured and subordinated; ABL discussions for a $50M revolver with Wells Fargo.

Why It Matters
This filing shows RideNow has replaced its prior credit facility with a new $220M senior secured term loan that carries relatively high interest spreads and restrictive covenants, which will affect the company’s interest expense and financial flexibility. The leverage and minimum liquidity covenant create clear thresholds managers must meet (including a targeted step‑down in allowed leverage by 2029). The amended subordinated notes add PIK interest that increases future obligations unless prepaid. The proposed $50M ABL, if completed, could provide working capital and help refinance part of the term loan, but the Term Loan’s prepayment premiums and covenants could influence the company’s ability to restructure debt early.