Lazy Days Reaches Agreement in Principle with Bondholders and Lenders on Terms of Financial Restructuring

SEFFNER, Fla.--Lazy Days’ R.V. Center, Inc. (the “Company”) today announced it has entered into an agreement in principle with its floor plan lenders and an ad hoc committee representing approximately 82% of its bondholders by value on a plan to restructure its debt. If implemented as proposed, the restructuring plan will eliminate all of the Company’s $137 million of debt (other than its ongoing floor plan credit facility), 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.

“We believe the plan we are announcing today will help preserve and enhance our business for many years to come and are pleased to already have received support for this plan from a significant majority of our bondholders and our floor plan lenders,” said John Horton, President and Chief Executive Officer. “This debt restructuring plan will provide us with greater financial flexibility and more cash to invest in our business. It will allow us to continue to offer, uninterrupted, our customers the same great selection in RVs, the same high level of service, and the same unique experience they have come to expect. As the largest single-site recreational vehicle retailer in the world, we are in a strong position to withstand the turbulence in the market and to take full advantage of our leadership position as the market recovers.”

Support for the debt restructuring plan is currently being solicited by the Company from its broader bondholder base. If approvals are received from the requisite percentages of the bondholders, as is expected, it is anticipated that the restructuring will be implemented through a so-called "prepackaged" Chapter 11 proceeding. A prepackaged Chapter 11 is designed to be completed promptly, within several months of filing, with minimal disruption to the Company's business and without affecting services to the Company’s customers. During the restructuring process, Lazydays will remain open for business as usual and will continue to serve customers in the normal course.

The Company plans to move quickly through the reorganization process with its same commitment to professionalism, customer service and quality. Customer benefits will remain unchanged.

Under the proposed plan, all suppliers will be paid in full -- or “unimpaired.” The Company 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 Lazy Days.

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.

About Lazydays

LazydaysŪ 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.