Dealership chain Holiday RV Superstores Inc. announced today (Dec. 19) it has repaid the last of the $7.8 million debt that it owed to Bank of America (BofA) as a result of it receiving funding from its major investor, Affinity Group Inc. Chairman Steve Adams.
Holiday RV had used the loan from BofA to pay for a significant portion of its inventory.
“The completion of this transaction demonstrates the commitment of our company and our investors,” said Holiday RV Chairman Marcus Lemonis. “Our improved equity position in our inventory will allow us greater altitude with respect to our inventory management program.”
Under the terms of the transaction, Adams loaned $7.8 million to Holiday RV, which is to be repaid or refinanced by Nov. 15, 2004. Meanwhile, Holiday RV will pay interest monthly on the loan at an annual rate of 12.75%.
Earlier, Adams agreed to provide Holiday RV with letters of credit – whose amounts and terms will be at Adams’ sole discretion – to allow the firm to obtain a new credit facility, Lemonis said.
AGI is the parent of TL Enterprises Inc., publisher of RV Business and RVBUSINESS.COM.
Holiday RV operates five dealerships under the name Recreation USA in Florida, Kentucky, New Mexico, South Carolina and West Virginia. Last month, it signed a term sheet to combine with Holiday Kamper & Boats, a dealership group with four locations in South Carolina and one in North Carolina.
The Holiday RV/Holiday Kamper combination is expected to be finalized in mid- to late January, Lemonis said.