Lazydays Strengthens Financial Position Through Strategic Moves

Lazydays Enhances Financial Strength and Streamlines Operations

Transactions significantly impact overall financial structure.

Lazydays Holdings, Inc. (“Lazydays”) has recently embarked on a pivotal journey aimed at transforming its financial landscape. This initiative includes a series of transactions that remarkably reduce the company's debt burden while also enriching its cash reserves. These strategic measures are set to usher the company back to a pathway of profitability.

Transaction Overview and Highlights

As part of this comprehensive approach, Lazydays plans to strategically sell seven dealerships, which include relevant real estate assets. Additionally, they will issue common stock to certain affiliates of Camping World Holdings, Inc. This combined effort totals around $65.5 million, contingent on stipulated conditions.

Moreover, the company has agreed to sell another dealership asset independently for approximately $8 million, also under certain conditions. One of the most significant aspects of this transaction is the completion of a $30 million common equity private investment in public equity financing, priced at $1.03 per share, which is anticipated to bolster the company’s cash flow.

Upcoming Rights Offering

Lazydays has plans to initiate a $25 million rights offering, also at $1.03 per share. This initiative is designed to allow all common stockholders, excluding certain investors, to acquire common stock at the same terms as the PIPE investors. This move is aimed at increasing investor confidence and enhancing overall financial stability.

Enhanced Financial Flexibility

The company has managed to arrange an amendment to its credit facility with a network of lenders led by Manufacturers and Traders Trust Company (M&T Bank). This adjustment brings about significant financial flexibility, an essential element for navigating the evolving economic landscape.

Effects of These Transactions

The impact of these transactions is substantial. Lazydays anticipates reducing its debt significantly, with estimates of a total reduction of about $65 million. This also includes an elimination of $68 million in preferred stock liquidation preferences, living up to a streamlined financial model.

Post-transaction, Lazydays is projected to maintain approximately $35 million in cash reserves and have outstanding debts of around $61 million, excluding specific financing options. The forecast also indicates the company will have about 119.5 million shares of common stock in circulation.

Leadership Insights on the Company’s Future

Robert DeVincenzi, Chairman of Lazydays, expressed optimism regarding these transformative transactions. He articulated, “These changes are integral for reinforcing our balance sheet and augmenting our financial flexibility. This strategic transition is paramount, not just for our company but for our investors, clientele, partners, and employees.” His message echoed throughout the organization, emphasizing commitment and accountability.

Interim CEO Ronald Fleming also shared his perspective: “This moment signifies a vital turnaround for Lazydays. It’s been a tough few years, but the dedicated efforts of our staff through these challenges have paved the way for a more agile and financially sound organization.”

Enduring Legacy and Commitment

Marcus Lemonis, Chairman and CEO of Camping World, highlighted the significance of Lazydays within the RV sector, noting their substantial history and importance. “Lazydays’ health is crucial for not only Camping World but for the RV industry as a whole. These steps taken are fundamental in fortifying its financial trajectory,” he stated.

Focus on Service and Customer Experience

With these transformative steps on the horizon, Lazydays is poised to revitalize its commitment and maintain its enduring reputation for quality service. Established in 1976, Lazydays has long been recognized for exceptional services in the RV industry. The aim is to continue providing outstanding experiences for RV enthusiasts, whether they are seasoned travelers or embarking on their first adventure.

Lazydays promises to uphold its legacy while restoring stockholder value and ensuring that customer satisfaction remains at the forefront of its operations.

Frequently Asked Questions

What is the main goal of Lazydays' recent transactions?

The primary goal is to strengthen the company’s financial structure by reducing debt and enhancing liquidity.

How much cash is Lazydays expected to have after the transactions?

Post-transactions, Lazydays expects to have approximately $35 million in cash.

What is the significance of the rights offering?

The rights offering allows stockholders to purchase shares at the same terms as significant investors, promoting confidence and investment in the company.

Who expressed optimism about the company's future?

Chairman Robert DeVincenzi and Interim CEO Ronald Fleming both spoke positively about the company’s path forward.

What legacy does Lazydays aim to uphold?

Lazydays seeks to maintain its tradition of exceptional service and a commitment to providing distinguished experiences for RV owners.

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