LINCOLNSHIRE, Ill. – Camping World Holdings Inc. (NYSE: CWH), the World’s Largest Recreational Vehicle Dealer, today announced that it has entered into an amended and restated floor plan credit agreement dated Feb. 18.
The RV Inventory Floor Plan Facility provides additional financial and operational flexibility for the company’s growth strategy by increasing the committed borrowing capacity by $300 million, to an aggregate amount of $2.150 billion, and resetting the accordion feature that provides the company up to an additional $300 million for further growth.
Camping World Chairman and CEO Marcus Lemonis commented, “Today’s agreement demonstrates the confidence that our lenders have in Camping World’s recent performance, fortified balance sheet, and rigorous inventory management. For over twenty years, led by Bank of America and J.P. Morgan, this facility has allowed us to build our company into what it is today, providing us with greater runway for future dealership growth and additional capacity to expand relationships with leading OEM partners, including Thor, Forest River and Winnebago.”
According to financial analysts at StockTitan.com, “the secured $2.15 billion RV inventory floor plan facility represents a strategic milestone for Camping World, with significant implications for their market position and growth trajectory. Floor plan financing is a specialized form of inventory financing important in the RV industry, allowing dealers to maintain extensive inventory without tying up significant capital. The $300 million increase in borrowing capacity, coupled with an additional $300 million accordion feature, provides substantial financial flexibility.”
Stock Titan also states the timing and scale of this facility are noteworthy for several reasons:
- The enhanced facility strengthens Camping World’s purchasing power with key manufacturers like Thor, Forest River and Winnebago, potentially leading to better terms and priority access to popular models.
- The increased capacity enables aggressive expansion of their dealership network beyond the current 43-state footprint, particularly valuable in a market where strategic acquisitions may become available.
- The backing of major financial institutions signals strong confidence in Camping World’s operational efficiency and inventory management practices, especially significant given the cyclical nature of the RV industry.
“From an operational perspective, this facility provides Camping World with several competitive advantages. The company can maintain optimal inventory levels across its extensive dealership network, important for capturing seasonal demand spikes and maintaining market share. The expanded facility also offers flexibility to pursue strategic growth opportunities, whether through new dealership acquisitions or organic expansion.
“However, this facility also carries implicit responsibilities and potential risks. The company must maintain disciplined inventory management to effectively utilize this increased capacity while avoiding over-leverage. The success of this expanded facility will largely depend on Camping World’s ability to execute its growth strategy while maintaining strong operational metrics and inventory turnover rates,” the analysts at Stock Titan noted.
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