RideNow Group Closes $220M Term Loan, Eyes $50M ABL Credit Line

RideNow Group, Inc. (NASDAQ: RDNW) has secured a $220 million senior secured term loan with affiliates of Centerbridge Partners, L.P., the Chandler, Arizona-based powersports retailer announced Monday, extending its debt maturity to 2031 in a move the company says optimizes its capital structure.

The refinancing replaces existing senior debt obligations and pushes the company's near-term repayment timeline out by several years, providing RideNow additional runway to pursue operational and growth objectives without the pressure of imminent maturities.

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Separately, the company disclosed it is in advanced discussions to establish a $50 million asset-backed lending facility, which would layer additional liquidity capacity on top of the newly arranged term loan. ABL facilities are typically secured against collateral such as inventory and receivables, making them a common financing tool for retail-oriented businesses with significant physical stock.

The dual-track financing effort signals that RideNow is actively repositioning its balance sheet. Centerbridge Partners, the New York-based private credit and equity firm, serves as lead lender on the term loan, underscoring the role of alternative credit providers in the current lending environment as traditional bank appetite for leveraged loans remains uneven.

No closing date for the ABL facility has been announced, and the company cautioned that advanced discussions do not guarantee a completed transaction. Continue reading at All Financial Services & Investing.