X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

COBURG, OR-Monaco Coach Corp. of Coburg says it has purchased from Outdoor Resorts of America three luxury motorcoach resort properties under development in Las Vegas, Indio, Calif. and Naples, Florida.

Publicly traded Monaco, one of the nation’s leading manufacturers of recreational vehicles, previously had loaned $8 million on the three projects and co-guaranteed $10 million in bank debt on the Las Vegas project. The assets of the projects are held in three distinct, wholly-owned subsidiary corporations of ORA and the acquisitions were completed as a stock purchase for each of the three subsidiaries, according to Monaco CFO Marty Daley.

Daley says the existing liabilities of these entities include approximately $3 million of accounts payable and accrued liabilities along with debt of $8.0 million owed to Monaco and $20.6 million owed to financial institutions. The $8.0 million note payable to Monaco will be eliminated against Monaco’s corresponding $8.0 million note receivable as part of consolidating these new subsidiaries. Daley says Monaco financed the payoff of the $20.6 million notes payable by obtaining a $22 million three-year term loan as an amendment to our current credit agreement.

Monaco has reached a tentative agreement to sell the property in Naples, currently undeveloped, for net proceeds of approximately $7 million. If the sale is completed, $3.0 million of the net proceeds will pay down Monaco’s new $22 million term loan and the remaining $4 million will reduce Monaco’s borrowings on its revolving line of credit.

Monaco President John Nepute says phase-one lot development is complete in Las Vegas and Indio and ORA will focus on lot sales at each location. “Our initial loan provided ORA with the resources to expand into these attractive locations,” says Nepute, “and we firmly believe in the need for these upscale resorts.”

Monaco’s investor relations contact Mike Duncan did not immediately return a phone call seeking comment. Monaco keeps its headquarters in Coburg and operates additional manufacturing facilities in Indiana. The company offers customers luxury recreational vehicle models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie and Royale Coach brand names.

The company’s Third quarter net sales were up 30.7% to $314.7 million compared to $240.8 million for the same period last year. The company’s share price stood at $17.10 at the close of trading Monday, up 24 cents on the day. The share price is $2.80 above its 52-week low of $14.30, which occurred on the last day of October. Its 52-week high of $30.70 dates back to March.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.