Monaco Coach Corp. Acquires Motorcoach Resorts

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.