Lazy Days’ R.V. Center Inc., a Seffner, Fla.-based portfolio company of Bruckmann Rosser Sherrill & Co., has filed for Chapter 11 bankruptcy protection, as part of a previously-announced financial restructuring. Wayzata Investment Partners will become majority shareholder, via a debt-for-equity swap.
Lazy Days’ R.V. Center, Inc. (the “Company”) today announced it has received the requisite approvals from its lenders and bondholders to move ahead with its previously announced debt restructuring plan. The restructuring plan is expected to eliminate all of the Company’s $137 million of bond debt, reducing its annual cash interest costs by approximately $16.2 million through the elimination of bond interest payments. The Company’s ongoing cash interest expense will be approximately $3 million incurred on its vehicle financing line, representing a reduction of 84% in annual cash interest expense from a total of $19.2 million prior to the restructuring.
As previously communicated, in order to implement this “pre-packaged” restructuring plan, the Company today filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court in Wilmington, Delaware. Because approvals have already been received from its lenders and the requisite percentages of the bondholders, the Company expects to move through the court-supervised process very quickly. The prepackaged Chapter 11 is expected to be completed by the end of the year, with minimal disruption to the Company’s business and without affecting services to the Company’s customers.
Lazydays will remain open for business as usual and will continue to serve customers in the normal course. The Company will maintain its same commitment to professionalism, customer service and quality. Customer benefits will remain unchanged.
“We are very pleased to have received approval from our bondholders and lenders for our debt restructuring plan, which will put Lazydays on strong footing to take advantage of our industry leadership position as the economy recovers,” said John Horton, President and Chief Executive Officer. “We intend to move as expeditiously as possible to implement the plan, and we have taken the next step today by initiating the court-supervised process.”
Under the proposed plan, all suppliers will be paid in full — or “unimpaired.” Accordingly, the Company has filed motions seeking authorization from the Court to continue to pay its suppliers under normal terms. Such approvals are routinely granted. The Company currently has adequate cash on hand to satisfy obligations associated with conducting business in the ordinary course. In addition, the Company’s floor plan lenders, Bank of America and Key Bank, have agreed to provide interim funding through the Company’s credit facility to support the acquisition of inventory during the restructuring period and have also consented to an amended floor plan agreement that will be effective on confirmation of the plan. The ad hoc committee of bondholders has agreed to invest $10,000,000 into the reorganized Lazydays.
The Company’s legal advisor is Kirkland & Ellis LLP and its financial advisor is Macquarie Capital (USA) Inc. For more information on the restructuring, please visit www.BetterLazydays.com.
Lazydays® was founded in 1976 with two travel trailers and $500. Today, the company’s focus on unparalleled customer service has made Lazydays the largest single-site RV dealership in North America. For more information on Lazydays, visit Lazydays.com.