Compass Diversified Holdings (CODI), an equity fund with controlling interests in CamelBak and Fox Factory, has announced that on Apr. 3, 2013 it exercised an option under a credit agreement dated Oct. 27, 2011 to borrow an incremental term loan of $30 million. The loan increases the company's aggregate outstanding borrowings under its term loan facility to about $281.9 million. It will require quarterly payments of about $700,000, with a final payment of the outstanding balance due in October 2017. CODI also amended the pricing terms of its term loan facility. The amounts borrowed now bear interest at either LIBOR plus a margin of 4.00 percent, compared with the previous LIBOR margin of 5.00 percent, or base rate plus a margin of 3.00 percent, as compared to the previous base rate margin of 4.00 percent. In addition, the LIBOR floor was reduced from 1.25 percent to 1.00 percent. CODI utilized $27.0 million of the net proceeds from the incremental term loan to reduce borrowings outstanding under its $290 million revolving credit facility. As a result, there are no current borrowings outstanding under the revolving credit facility at closing. CODI has also announced that it has amended the pricing terms of its revolving credit facility. Under the terms of the amendment, amounts borrowed now bear interest based on a leverage ratio defined in the credit agreement at either LIBOR plus a margin ranging from 2.50 percent to 3.50 percent, compared with the previous margin that ranged from 3.00 percent to 4.00 percent, or base rate plus a margin ranging from 1.50 percent to 2.50 percent as compared to the previous margin that ranged from 2.00 percent to 3.00 percent. The unused fee for the revolving credit facility was reduced from 1.00 percent to 0.75 percent when leverage is lower than a defined ratio, while the maturity date for the revolving credit facility was extended by six months to April 2017. All other terms of the credit agreement remain unchanged.

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