WESTPORT, Conn., April 18, 2018 /PRNewswire/ -- Compass
Diversified Holdings (NYSE: CODI) ("CODI," "we," "our" or "us"), a
Delaware statutory trust and the
sole owner of 100% of the trust interests in Compass Group
Diversified Holdings, LLC (the "Company"), announced today that the
Company has signed a credit agreement for a revolving credit
facility totaling $600 million and a
term loan facility in the amount of $500
million. CODI also announced that the Company has closed the
previously announced private offering of $400 million in aggregate principal amount of
8.000% senior unsecured notes due 2026.
The new credit agreement, led by Bank of America Merrill Lynch,
SunTrust Robinson Humphrey, TD Securities, and U.S. Bank National,
combine for $1.1 billion 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 restrictions, amounts borrowed bear
interest based on either LIBOR plus a margin ranging from 1.50% to
2.50% or prime plus a margin ranging from 0.50% to 1.50%, as
determined by a leverage ratio defined in the credit agreement.
Under the terms of the seven-year term loan facility, amounts
borrowed bear interest based on either LIBOR plus a margin of 2.25%
or 2.50% or prime plus a margin of 1.25% or 1.50%, as determined by
such leverage ratio. The term loan facility requires quarterly
payments of $1.25 million, with a
final payment of the outstanding principal balance due April 18, 2025. The Company utilized the proceeds
from the term debt facility and the notes offering to refinance
existing term loan indebtedness and repay revolving loan
indebtedness under its previous credit agreement. There are initial
borrowings outstanding under the new revolving credit facility of
approximately $73 million at closing.
The Company estimates it has approximately $500 million in net borrowing availability under
its new revolver as of the closing date.
The Company expects to utilize the future borrowings under the
revolving credit facility to fund future expansion opportunities at
its existing subsidiary companies, fund acquisitions of new
platform acquisition opportunities and provide for working capital
and general corporate uses.
Elias Sabo, CODI's CEO-elect,
commented, "We are pleased to have completed our recent financings
under favorable terms, enabling the Company to enhance our
financial flexibility, extend our debt maturities and further
diversify our capital structure. In addition to closing on
attractive eight year fixed rate notes, we refinanced our existing
debt and extended the maturities of our revolver and term loans to
2023 and 2025, respectively. We appreciate the ongoing support of
our banking group and the capital markets, highlighting the
Company's strong future prospects. We remain well positioned
to continue to benefit from our leading subsidiaries, while
pursuing future acquisitions that build long-term shareholder value
and support our ability to provide stable cash distributions."
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").
About Compass Diversified Holdings ("CODI")
CODI owns and manages a diverse family of established North
American middle market businesses. Each of its current subsidiaries
is a leader in its 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 shareholders.
Our ten majority-owned subsidiaries are engaged in the following
lines of business:
- The design and marketing of purpose-built tactical apparel and
gear serving a wide range of global customers (5.11);
- The manufacture of quick-turn, small-run and production rigid
printed circuit boards (Advanced Circuits);
- The manufacture of engineered magnetic solutions for a wide
range of specialty applications and end-markets (Arnold Magnetic
Technologies);
- Environmental services for a variety of contaminated materials
including soils, dredged material, hazardous waste and drill
cuttings (Clean Earth);
- The design, manufacture and marketing of airguns, archery
products, optics and related accessories (Crosman);
- The design and marketing of wearable baby carriers, strollers
and related products (Ergobaby);
- The design and manufacture of custom molded protective foam
solutions and OEM components (Foam Fabricators);
- The design and manufacture of premium home and gun safes
(Liberty Safe);
- The manufacture and marketing of branded, hemp-based food
products (Manitoba Harvest); and
- The manufacture and marketing of portable food warming fuels
and creative ambience solutions for the hospitality and consumer
markets (Sterno Products).
This press release may contain certain forward-looking
statements, including statements with regard to the future
performance of CODI. 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 SEC for the year ended December 31, 2017 and other filings with the SEC.
Except as required by law, CODI undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
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SOURCE Compass Diversified Holdings