RideNow refinances $220 million term loan and pursues Wells Fargo ABL
The term loan is complete. A proposed $50 million Wells Fargo facility would replace used floorplan financing and partly repay the new debt.
RideNow Group has refinanced its term debt with $220 million of senior secured loans from affiliates of Centerbridge Partners. The powersports retailer's September 28 announcement says the loans mature on September 25, 2031. A separate proposed $50 million asset-backed facility with Wells Fargo remains in advanced discussions and still needs final credit approval and loan documents. Brokers and funders assessing a refinancing need to identify how much cash remains available after old lenders are repaid. RideNow says part of the proposed ABL borrowing would repay the new term loan. The facility would also replace its existing Wells Fargo used floorplan facility. Adding the two announced amounts would overstate what the company has secured and obscure the planned debt repayments. The Centerbridge loans bear interest at Adjusted Term SOFR plus 8.375% a year. Their proceeds refinanced the existing term loan agreement with Oaktree Fund Administration in full, and that agreement was terminated at closing. The announcement establishes a completed refinancing and a later maturity. It does not establish that $220 million of additional cash is available to buy vehicles or fund expansion. The proposed Wells Fargo borrowing is expected to cost Daily Simple SOFR plus 2.25% a year. That is a lower stated spread, but the reference rates differ and the release does not provide enough detail to calculate an all-in saving. Fees, actual borrowing levels and the amount of term debt repaid would affect the result. The company says any repayment would be subject to the term loan agreement. Wells Fargo is expected to receive a first-priority security interest in certain working capital assets and inventory. The release does not give advance rates, reserves, eligible inventory definitions or the proposed maturity. Those omissions matter to a lender trying to estimate usable credit. A facility limit establishes a ceiling; the amount a borrower can actually draw depends on the final agreement and the assets that qualify. RideNow sells new and pre-owned motorcycles, side-by-side vehicles and other powersports products. Used vehicles make the collateral review specific. A lender evaluating this type of dealer should reconcile each financed unit to its ownership record, location and existing lien. Age, condition and recent sale prices help establish how much a vehicle can support. These are diligence considerations, not disclosed terms of the proposed Wells Fargo facility. The company's second-quarter results provide a separate reason to examine funding sources carefully. For the first half of 2026, RideNow reported $27.7 million of cash used in operating activities under GAAP. Its non-GAAP adjusted free cash flow was positive $20.8 million. The reconciliation includes $50.6 million of net proceeds on non-trade floorplan facilities and deducts $2.1 million of capital expenditures. RideNow discloses that adjustment. A reviewer should keep the financing proceeds separate from cash generated by the business when assessing debt service. A positive adjusted figure that includes inventory financing answers a different question from operating cash flow. The first-half figures also predate this refinancing and cannot establish the cash position after the September closing. A useful closing file would connect the old debt payoff to the new loan balance, then show any later ABL draw and its use. If the Wells Fargo transaction closes, a reviewer should check which inventory transfers from the existing used floorplan arrangement and which liens are released. The same unit should not support two availability calculations unless the agreements expressly permit that treatment. The announcement provides no evidence of duplicate financing at RideNow. Opinion Underwrite the completed funding A credit decision made today should use the completed term loan and the existing floorplan arrangement. Keep the proposed ABL in a separate scenario until approval and closing are documented. Then recalculate available cash after required repayments, fees and borrowing restrictions before increasing exposure to the borrower. Read more lending coverage at plutusai.net .