WESTPORT, Conn., April 3, 2012 /PRNewswire/ -- Compass
Diversified Holdings (NYSE: CODI) ("CODI" or the "Company"), an
owner of leading middle market businesses, announced today that on
April 2, 2012 it exercised an option
under the Company's credit agreement, dated as of October 27, 2011, to borrow an incremental term
loan in the amount of $30 million.
The incremental term loan, arranged by TD Securities and issued at
99% of par value, increases the Company's aggregate outstanding
borrowings under its term loan facility to approximately
$255 million. The increased term loan
facility will require quarterly payments of approximately
$0.64 million with a final payment of
the outstanding principal balance due in October 2017.
CODI also announced that, concurrent with the incremental term
loan borrowing, it has amended the pricing terms of its term loan
facility. Under the terms of the amendment, amounts borrowed bear
interest at LIBOR plus a margin of 5.00%, as compared to the
previous margin of 6.00%. In addition, the LIBOR floor was reduced
to 1.25% from 1.50%. All other terms of the credit agreement remain
unchanged. In connection with the amended facility, the Company
paid an amendment fee of approximately $2.25
million, equal to 1.00% of the outstanding portion of the
term loan before the $30 million
increase. CODI will utilize the net proceeds from the incremental
term loan to reduce borrowings under its $290 million revolving credit facility.
Alan Offenberg, CODI's Chief
Executive Officer, commented, "Our amended term loan facility
enhances CODI's financial flexibility and lowers the Company's
borrowings costs. By taking advantage of a more attractive pricing
environment, we expect to significantly reduce future interest
expense for the benefit of the Company and its shareholders. We
appreciate the continued support of our lending group, which
underscores our strong growth prospects as we remain focused on
utilizing our substantial liquidity to consummate accretive
platform acquisitions and invest in the long-term performance of
our existing subsidiaries."
Additional information on the amended term loan facility will be
available on the Company's current report on Form 8-K that will be
filed with the Securities and Exchange Commission (the "SEC") this
week.
About Compass Diversified Holdings ("CODI")
Compass Diversified Holdings ("CODI") owns and manages a diverse
family of established North American middle market businesses. Each
of its nine subsidiaries is a leader in their niche
market.
CODI maintains controlling ownership interests in each of its
subsidiaries in order to maximize its ability to impact long term
cash flow generation and value. The Company provides both debt and
equity capital for its subsidiaries, contributing to their
financial and operating flexibility. CODI utilizes the cash
flows generated by its subsidiaries to invest in the long-term
growth of the Company and to make cash distributions to its
owners.
Our subsidiaries are engaged in the following lines of
business:
- The manufacture of quick-turn, prototype and production rigid
printed circuit boards (Advanced Circuits,
www.advancedcircuits.com);
- The design and manufacture of promotionally priced upholstered
furniture (American Furniture Manufacturing,
www.americanfurn.net);
- The design and manufacture of medical therapeutic support
surfaces and other wound treatment devices (Anodyne Medical
Device, also doing business and known as Tridien
Medical, www.tridien.com);
- The manufacture of engineered magnetic solutions for a wide
range of specialty applications and end-markets (Arnold Magnetic
Technologies, www.arnoldmagnetics.com);
- The design and manufacture of personal hydration products for
outdoor, recreation and military use (CamelBak
Products, www.camelbak.com);
- The design and marketing of wearable baby carriers and related
products (ERGObaby, www.ergobabycarriers.com);
- The design, manufacture and marketing of premium suspension
products for mountain bikes and powered off-road vehicles (Fox
Racing Shox, www.foxracingshox.com);
- The design, sourcing and fulfillment of logo based promotional
products (HALO Branded Solutions, www.halo.com); and
- The design and manufacture of premium home and gun safes
(Liberty Safe,
www.libertysafe.com).
To find out more about Compass Diversified Holdings, please
visit www.compassdiversifiedholdings.com.
This press release may contain certain forward-looking
statements, including statements with regard to the future
performance of the Company. Words such as "believes," "expects,"
"projects," and "future" or similar expressions, are intended to
identify forward-looking statements. These forward-looking
statements are subject to the inherent uncertainties in predicting
future results and conditions. Certain factors could cause actual
results to differ materially from those projected in these
forward-looking statements, and some of these factors are
enumerated in the risk factor discussion in the Form 10-K filed by
CODI with the Securities and Exchange Commission for the year ended
December 31, 2011 and other filings
with the Securities and Exchange Commission. CODI undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
SOURCE Compass Diversified Holdings