National R.V. Holdings Signs $33.5 Million Sale Leaseback of CA Facility

National RV Holdings Web Site - November 22, 2006

National R.V. Holdings, Inc. (NYSE: NVH), the owner of leading RV manufacturers National RV, Inc. and Country Coach, Inc., today announced that it has entered into an agreement to sell and leaseback its Perris, California property to Warrior Holdings, Inc., the owner of Weekend Warrior.

At closing, the transaction will infuse $33.5 million of capital into the Company enabling it to, among other actions, substantially reduce the outstanding balance on its working capital line of credit. The company encountered financial challenges earlier this year when National RV received defective fiberglass that it used to construct sidewalls on at least 72 motorhomes.

Under the terms of the agreement the sales price is $33.5 million, and calls for the Company to enter into a 10-year, triple-net lease with approximately $2.7 million in annual lease payments, which increase 3% per year. The lease will include two 5-year renewal options. The agreement provides for customary closing conditions, including a due diligence period by the buyer through December 18, 2006 with closing scheduled to occur on or about December 21, 2006. Sphere: Related Content