Coburg, Ore.-based Monaco Coach Corp. today (Nov. 5) announced that it has entered into two new definitive financing arrangements, the first of which is a three-year $90 million revolving working capital loan and security agreement with several financial institutions. Bank of America N.A. serves as agent for the lenders.
The recreational vehicle builder also executed a secured financing agreement with Ableco Finance LLC for a $39.3 million 3 1/2-year secured term loan. The funding of these loan facilities is scheduled to occur today and will pay off and retire the existing credit agreement.
“We are extremely pleased to have signed these two financing arrangements, which we believe give us the liquidity and flexibility to continue executing on our operational restructuring plan to size the company for today’s market,” said Kay Toolson, chairman and CEO of Monaco. “Despite these difficult times for our industry, today’s announcement of our new financing agreements reinforces to our dealer partners, vendors and retail customers that Monaco is on solid financial footing and will remain a strong partner.”
“We remain committed to product innovation and quality and look forward to displaying some exciting new models this December at the National RV Trade Show in Louisville,” added Toolson. “We continue to introduce new towable and motorized products to help increase retail traffic at our dealer partner locations, continue our market share gains in the Class A segment, as well as grow our towable market share.”