Chandler, Arizona, September 28th / PRNewswire / — RideNow Group, Inc. (Nasdaq ticker: RDNW) Today, the company announced that it has signed a new term loan credit agreement with affiliates of Centerbridge Partners and L.P. As a result, it has obtained a $220 million senior secured term loan at an adjusted Term SOFR plus an annual interest rate of 8.375%. The proceeds from this loan have been used to fully refinance the company's existing term loan credit agreement, which ceased on the settlement date. The maturity date of the new term loan is September 25, 2031.

RideNow Chairman, Chief Executive Officer, and President Michael Quartieri stated: "Obtaining this new term loan financing directly reflects the intrinsic strength and development trajectory of RideNow. Extending the debt maturity date to 2031 eliminates the near-term maturity risk and significantly enhances our financial flexibility. In addition, the recent ABL loan arrangement with Wells Fargo will provide us with even more financial flexibility as we continue to move forward. This transaction is a highlight of a transformative quarter for RideNow, as we also launched Clear Price this quarter – our new pricing model that complies with FTC regulations. As a leader in the powersports distribution industry, we were among the first companies to adopt the FTC compliant pricing, which had a negative impact on our August performance in the short term. Now that a stronger balance sheet has been established and the phase of adopting FTC compliant pricing has passed, our entire RideNow team will continue to focus on improving operational efficiency and implementing our long-term growth initiatives. To that end, we also completed a supplementary acquisition of a Can-Am and Sea Doo distributor at our new store in Tallahassee at the end of August."

Meanwhile, RideNow is in in-depth discussions with Wells Fargo (Wells Fargo Bank, N.A) regarding a proposed $50 million senior guarantee ABL credit arrangement. The interest on the loan under this proposed ABL is expected to be calculated at a simple daily SOFR plus an annual interest rate of 2.25%. The company plans to use a portion of the funds from the ABL loan to repay part of the $220 million balance of the term loan, subject to the terms specified in the term loan credit agreement. The company stated that the ABL loan is intended to provide RideNow with lower-cost debt in order to optimize its capital structure.

It is expected that the ABL loan will be secured by a portion of working capital assets and the first lien on inventory. In addition, the ABL loan is anticipated to replace the current used car floorplan financing arrangement with Wells Fargo. The terms of the ABL loan still require final credit approval, negotiation, and signing of formal loan documents, as well as meeting customary delivery conditions.

Regarding RideNow Group, Inc.

RideNow Group, Inc. (Nasdaq ticker: RDNW) is a powersports distribution group. The company believes that its powersports business is the largest powersports retail group in the United States, offering a wide variety of new and used motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. The company also provides parts, clothing, accessories, financial and insurance products and services, as well as after-sales products from multiple manufacturers. It is also one of the largest buyers of used powersports vehicles in the United States and uses its proprietary RideNow Cash Offer tools to purchase vehicles directly from consumers. For more information, please visit https :// www.ridenow.com.

Forward-looking Statements

This press release contains “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995, which can be identified by words such as “expected,” “planned,” “will,” “may,” “anticipated,” “believed,” “should,” “intended,” “estimated,” and similar phrases. Readers are cautioned not to rely excessively on these forward-looking statements, which are based on the company’s expectations as of the date of this press release and represent only the views as of that date. Such forward-looking statements are subject to risks and uncertainties, and actual results may differ significantly from those stated or implied in them. The forward-looking statements in this press release include, but are not limited to: the company’s future operating results and financial conditions, business strategies and plans, the expected performance and terms of ABL loans, anticipated reductions in overall interest rates and capital costs, the company’s ability to maintain sufficient inventory to meet customer needs, industry and market conditions, liquidity and adequacy of capital resources, the company’s ability to refinance or repay debt, and the company’s future operating objectives. The company’s actual future results and trends may vary significantly due to a variety of factors, including those listed under the headings “Forward-Looking Statements” and “Risk Factors” in the company’s SEC documents, which may be updated and revised from time to time. Except as required by law, the company has no obligation to publicly update or revise any forward-looking statements, whether due to new information, future events, or other reasons.

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