REV Group, Inc. entered into a revolving credit and guaranty agreement providing for a senior secured asset-based revolving credit facility and a term loan and guaranty agreement providing for a $75.0 million senior secured term loan, the material terms of which are described in more detail below.

The ABL Agreement was entered into among the company, certain subsidiaries of the company, as Guarantor Subsidiaries, Ally Bank, as Administrative Agent and Ally and BMO Harris Bank N.A., as Co-Collateral Agents, and certain other lenders and agents party thereto.

The ABL Facility provides for revolving loans and letters of credit in an aggregate amount of up to $350.0 million. The total ABL Facility is subject to a $30.0 million sublimit for swing line loans and a $35.0 million sublimit for letters of credit, along with certain borrowing base and other customary restrictions as defined in the ABL Agreement. The ABL Agreement allows for incremental facilities in an aggregate amount of up to $100.0 million, plus the excess, if any, of the borrowing base then in effect over total commitments then in effect. Any such incremental facilities are subject to receiving additional commitments from lenders and certain other customary conditions. The ABL Facility matures five years after the closing date.

All revolving loans under the ABL Facility bear interest at rates equal to, at the company’s option, either a base rate plus an applicable margin, or a Eurodollar rate plus an applicable margin. Applicable interest rate margins are initially 0.75% for all base rate loans and 1.75% for all Eurodollar rate loans (with the Eurodollar rate having a floor of 0%), subject to adjustment based on utilization in accordance with the ABL Agreement. Interest is payable quarterly for all base rate loans, and is payable monthly or quarterly for all Eurodollar rate loans.

The lenders under the ABL Facility have a first priority security interest in substantially all accounts receivable and inventory of the company, and a second priority security interest in substantially all other assets of the company.