WESTPORT, Conn., June 9, 2014 /PRNewswire/ -- Compass
Diversified Holdings (NYSE: CODI) ("CODI," "we," "our" or the
"Company"), an owner of leading middle market businesses, announced
today that it has signed a credit agreement for a revolving credit
facility totaling $400 million and a
term loan facility in the amount of $325
million. The two facilities, led by Bank of America Merrill
Lynch, SunTrust Robinson Humphrey, TD Securities, and U.S. Bank
National combine for $725 million in
new debt financing and replace the Company's previous revolving
credit facility and term loan facility.
Under the terms of the five-year revolving credit facility,
which is subject to borrowing base restrictions, amounts borrowed
bear interest at LIBOR plus a margin ranging from 2.00% to 2.75%,
based on a leverage ratio defined in the credit agreement. Under
the terms of the seven-year term loan facility, amounts borrowed
bear interest at LIBOR plus a margin of 3.25%. The term loan
facility requires quarterly payments of approximately $0.81 million, with a final payment of the
outstanding principal balance due June 2021. The Company
utilized approximately $280 million
of the proceeds from the term debt facility to refinance existing
term loan indebtedness under its previous credit agreement. As a
result, there are no initial borrowings outstanding under the
revolving credit facility at closing. The Company expects to
utilize the remaining proceeds from the issuance of the term loan
and future borrowings under the revolving credit facility to fund
future expansion opportunities at its existing subsidiary
companies, pursue new platform acquisition opportunities and
provide for working capital and general corporate uses.
Alan Offenberg, CODI's Chief
Executive Officer, commented, "We are very pleased to have
completed this debt financing, which provides multiple benefits for
our Company. First, it allows us to refinance our existing debt and
extend our maturities to June 2019,
in the case of our revolver, and to June
2021 for the new term loan. Second, it ensures attractive
debt terms and pricing over the next several years. Third, the
financing expands our overall debt capacity and further enhances
our ability to continue to aggressively pursue organic and
acquisition-related growth opportunities. Finally, we diversified
our banking relationships by adding Bank of America Merrill Lynch
to our lending group. We appreciate the support of all the
financial institutions who participated in this transaction, which
demonstrates their confidence in CODI's future prospects."
Additional information on the credit agreement 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") later today.
About Compass Diversified Holdings ("CODI")
CODI owns
and manages a diverse family of established North American middle
market businesses. Each of its eight current businesses is a leader
in its niche market.
CODI maintains controlling ownership interests in each of its
businesses 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 businesses, contributing to their financial
and operating flexibility. CODI utilizes the cash flows generated
by its businesses to invest in the long-term growth of the Company
and to make cash distributions to its shareholders.
Our businesses 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, strollers
and related products (Ergobaby, www.ergobaby.com);
- The design and manufacture of high-performance suspension
products primarily for mountain bikes, side-by-side vehicles,
on-road and off-road vehicles and trucks, all-terrain vehicles,
snowmobiles, specialty vehicles and applications, and motorcycles
(FOX, www.ridefox.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, 2013 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