Lazy Days RV Center, Inc., the world’s largest recreational vehicle dealership operating out of a single superstore, was a privately held company with 70% ESOP-ownership.
Lazy Days was facing bankruptcy and sought to recapitalize the business.
Candlewood Partners represented the buyer in negotiating the terms of the recapitalization, and structured and syndicated $212.5 million of senior and subordinated financing for the transaction. As a major component of the restructuring negotiations, Candlewood performed extensive financial modeling and delivered a comprehensive valuation, liquidation, and bankruptcy analysis. The financing consisted of $110 million of senior notes from a five-member bank group, a $65 million commitment for inventory financing, and $37.5 million of senior subordinated notes purchased by five institutional investors. Benefits to the principal selling shareholder included tax deferral of the sale proceeds, a significant incentive compensation package, as well as meaningful equity interest in the successor company.
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Candlewood Partners, LLC
Established 2001
