Cadre Holdings Announces Expansion to Credit Facilities
December 23 2024 - 9:13AM
Business Wire
Upsized $590 Million Facility Enhances
Flexibility to Support Long-Term Acquisition Strategy and Growth
Objectives
Cadre Holdings, Inc. (NYSE: CDRE) (“Cadre” or “the Company”), a
global leader in the manufacturing and distribution of safety
equipment and other related products for the law enforcement, first
responder, military and nuclear markets, today announced the
closing of a new credit agreement that provides senior secured
credit facilities of up to $590 million and matures in five
years.
The financing consists of a five-year undrawn revolving credit
facility of $175 million, a five-year term loan facility of $225
million, as well as two delayed draw term loans of up to $115
million and $75 million, respectively (collectively, the “Credit
Facilities”). The revolving credit facility and $225 million term
loan are expected to be used for working capital and general
corporate purposes, as well as to refinance existing outstanding
debt. Subject to the conditions contained in the Credit Facilities,
the $115 million delayed draw term loan is available to the Company
for six months from the closing of the facilities to support
current acquisition activity, while the $75 million delayed draw
term facility is available to the Company for eighteen months from
the closing to support future opportunities. The $75 million
delayed draw term facility is also available for general corporate
purposes. Combined with the approximately $93.0 million of cash and
cash equivalents as of September 30, 2024, this provides Cadre with
approximately $458.0 million of capital to pursue its growth
objectives.
“This strategic refinancing provides more scale and financial
flexibility with favorable terms and extended maturities, enabling
Cadre to continue to proactively seek to capitalize on meaningful
organic and inorganic growth opportunities,” said Warren Kanders,
CEO and Chairman. “The agreement includes up to $190 million of
delayed draw term loans, which, subject to the conditions contained
in the Credit Facilities, are available as we actively pursue deals
in our M&A funnel consistent with our patient and disciplined
approach. We appreciate the strong support of our banking group and
welcome new long-term financing partners, which is a testament to
their confidence in our businesses’ attractive fundamentals moving
forward.”
PNC Bank is the administrative agent and left-lead arranger.
Bank of America, Regions Bank, US Bank and Bank of Montreal acted
as Joint Lead Arrangers on the Credit Facilities. Additional
lenders are Wells Fargo, SouthState Bank and EverBank.
About Cadre
Headquartered in Jacksonville, Florida, Cadre is a global leader
in the manufacturing and distribution of safety products. Cadre's
equipment provides critical protection to allow users to safely and
securely perform their duties and protect those around them in
hazardous or life-threatening situations. The Company's core
products include body armor, explosive ordnance disposal equipment,
duty gear and nuclear safety products. Our highly engineered
products are utilized in over 100 countries by federal, state and
local law enforcement, fire and rescue professionals, explosive
ordnance disposal teams, and emergency medical technicians. Our key
brands include Safariland® and Med-Eng®, amongst others.
Forward-Looking Statements
Please note that in this press release we may use words such as
“appears,” “anticipates,” “believes,” “plans,” “expects,”
“intends,” “future,” and similar expressions which constitute
forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are made based on our expectations and
beliefs concerning future events impacting the Company and
therefore involve a number of risks and uncertainties. We caution
that forward-looking statements are not guarantees and that actual
results could differ materially from those expressed or implied in
the forward-looking statements. Potential risks and uncertainties
that could cause the actual results of operations or financial
condition of the Company to differ materially from those expressed
or implied by forward-looking statements in this release, include,
but are not limited to, those risks and uncertainties more fully
described from time to time in the Company's public reports filed
with the Securities and Exchange Commission, including under the
section titled “Risk Factors” in the Company's Annual Report on
Form 10-K, and/or Quarterly Reports on Form 10-Q, as well as in the
Company’s Current Reports on Form 8-K. All forward-looking
statements included in this press release are based upon
information available to the Company as of the date of this press
release and speak only as of the date hereof. We assume no
obligation to update any forward-looking statements to reflect
events or circumstances after the date of this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241222354010/en/
Contact: Gray Hudkins Cadre Holdings, Inc. 203 550 7148
gray.hudkins@cadre-holdings.com
Investor Relations: The IGB Group Leon Berman / Matt
Berkowitz 212 477 8438 / 212 227 7098 lberman@igbir.com /
mberkowitz@igbir.com
Media Contact: Jonathan Keehner / Andrew Siegel Joele
Frank, Wilkinson Brimmer Katcher 212 355 4449
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