Camping World Holdings, Inc. (NYSE:CWH), a retailer specializing in recreational vehicles, parts, and services, with a market capitalization of $2.4 billion and a consistent 9-year dividend payment history, has amended its existing credit agreement, extending the maturity date of its revolving credit facility.
The amendment, effective as of Monday, was disclosed in a recent filing with the Securities and Exchange Commission. According to InvestingPro analysis, the company currently shows signs of being overvalued based on its Fair Value assessment.
The amendment to the credit agreement, which was originally entered into on June 3, 2021, involves the company's subsidiaries CWGS Group, LLC, and CWGS, LLC, with Goldman Sachs (NYSE:GS) Bank USA serving as the administrative agent. The senior secured credit facilities consist of a seven-year $1.4 billion term loan facility and a five-year $65.0 million revolving credit facility. With total debt of $3.57 billion and a debt-to-equity ratio of 33.1x as reported by InvestingPro, managing these credit facilities is crucial for the company's financial stability.
With the new amendment, the revolving credit facility's maturity date has been extended from June 3, 2026, to March 3, 2028, or 91 days prior to the maturity date of the FreedomRoads Floor Plan Credit Agreement, whichever comes first.
The credit agreement imposes certain restrictive covenants on Camping World Holdings, which include limitations on mergers, business operations changes, acquisitions, additional indebtedness, asset sales, investments, and dividend payments, while also setting minimum operating requirements.
In other recent news, Camping World Holdings reported steady third-quarter revenues of $1.7 billion for fiscal year 2024, despite procurement challenges in used inventory. The company saw a significant 31% increase in new unit sales, largely due to a strong performance in Class C RV sales. The adjusted EBITDA reached $67.5 million, and ambitious plans for growth were outlined, with the aim to exceed 15% market share through dealership acquisitions and improved inventory management.
KeyBanc Capital Markets maintained its Overweight rating on shares of Camping World Holdings, expressing a more positive outlook on Camping World's medium to long-term opportunities, including organic growth and potential mergers and acquisitions. KeyBanc's analysis anticipates Camping World to experience meaningful year-over-year growth, further reinforcing its unique position in the recreational vehicle (RV) market.
Despite an 18% decline in used unit sales, Camping World is targeting low to mid-double-digit growth in this area for the upcoming year. The company is optimistic about its proprietary data's ability to help navigate macroeconomic challenges. According to the executives, Camping World expects a more stable pricing environment and modest growth in 2025.
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