On May 18, investor Wingspire Capital provided a US$95 million senior secured credit facility consisting of a US$35 million revolving credit line and a US$60 million term loan to Fox Racing Inc. The U.S. company said it’s using the loan proceeds not only to refinance its prior senior credit facility but also to support its immediate and long-term growth initiatives. A senior secured credit facility is the aggregate of all credit facilities available to a customer to meet a borrowing requirement from one or more banks. Revolving credit refers to all loans that can be drawn repeatedly by the borrower up to the maximum amount of a credit line within the term of the loan in varying amounts.
As people spend more time outdoors during the Covid-19 pandemic, their spending on sports and fitness activities also increases. Fox Racing, part of the portfolio of private investment firm Altamont Capital Partners, is among those benefiting from rising demand. The California-based protective gear and apparel outfitter is experiencing product demand like never before. More capital is needed to stem further growth and ride the wave.
Fox Racing, by the way, has nothing in common with the publicly traded U.S. suspension specialist Fox Factory Holding Corp. but shares the same family roots. Fox Racing founder Geoff Fox is the brother of Fox Factory founder Bob Fox. Fox Factory is also well-positioned in the bicycle business (with brands Easton Cycling, Fox, Marzocchi and Race Face).
