REV Group Amends Credit Agreement as Equitable Holdings Launch Tender Offer

REV Group, Inc. (NYSE: REVG) announced on February 20, 2025, that it entered into Amendment No. 3 to its existing Credit Agreement, originally dated April 13, 2021. The amendment, which was executed with its lenders and JPMorgan Chase Bank N.A. serving as Administrative Agent, revises several key terms of its senior secured asset-based revolving credit facility.

Among the changes, the amendment extends the maturity of the revolving credit facility to five years from the effective date. It also reduces the aggregate commitments for revolving loans and letters of credit from $550.0 million to $450.0 million, while increasing the sublimit for swingline loans from $30.0 million to $45.0 million. In addition, the interest rate on revolving loans has been adjusted so that the applicable margin is now based on the average quarterly availability relative to the total revolving loan commitment.

The credit agreement’s amendment further revises the borrowing base calculation by increasing the weighted percentage applied to eligible receivables and subjecting the calculation to a dilution reserve. Notably, the revised formula excludes eligible equipment and real property, resulting in the release of the Company’s real property assets as collateral. The minimum fixed charge coverage ratio covenant was modified to 1.00 to 1.00, and the compliance periods for maintaining this covenant and submitting related financial reports have been adjusted. Additionally, the amendment updates certain dollar thresholds applicable to customary covenants and permits the Company, subject to specified conditions, to secure an additional term loan facility with financial institutions acceptable to the Administrative Agent.

In a related filing attached as Exhibit 99.1, Equitable Holdings, Inc. (NYSE: EQH) announced a cash tender offer for up to 46,000,000 units representing beneficial interests in AllianceBernstein Holding L.P. The offer, priced at $38.50 per unit—approximately a 7.8% premium over the closing price as of February 21, 2025—totals an aggregate purchase value of about $1.8 billion, less applicable tax withholding. If fully executed, the tender offer would enable Equitable Holdings to increase its economic interest in AllianceBernstein L.P. from its current approximate 61.9% to about 77.5%. The offer, which is not conditioned on financing or a minimum number of units tendered, is scheduled to expire at 5:00 p.m. ET on March 24, 2025, unless extended.

Both corporate actions reflect ongoing efforts by the respective companies to optimize their financial structures and strategic investments. REV Group’s amendments to its credit facility are aimed at providing greater flexibility and alignment with its operational priorities, while Equitable Holdings’ tender offer represents a strategic move to bolster its stake in AllianceBernstein through increased liquidity opportunities for unitholders.

Investors and stakeholders are advised to review the full details available in the respective filings with the Securities and Exchange Commission for additional context and any associated risks or conditions.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read REV Group’s 8K filing here.

REV Group Company Profile

REV Group, Inc, together with its subsidiaries, designs, manufactures, and distributes specialty vehicles, and related aftermarket parts and services in the United States, Canada, and internationally. It operates through three segments: Fire & Emergency, Commercial, and Recreation. The Fire & Emergency segment provides fire apparatus equipment under the Emergency One, Kovatch Mobile Equipment, Ferrara, Spartan Emergency Response, Smeal, Spartan Fire Chassis, and Ladder Tower brand names; and ambulances under the American Emergency Vehicles, Horton Emergency Vehicles, Leader Emergency Vehicles, Road Rescue, and Wheeled Coach brand names.