WESTPORT, Conn., April 3, 2013 /PRNewswire/ -- Compass
Diversified Holdings (NYSE: CODI) ("CODI" or the "Company"), an
owner of leading middle market businesses, announced today that on
April 3, 2013 it exercised an option
under the Company's credit agreement, dated as of October 27, 2011, to borrow an incremental term
loan in the amount of $30 million.
The incremental term loan, arranged by TD Securities and issued at
par value, increases the Company's aggregate outstanding borrowings
under its term loan facility to approximately $281.9 million. The increased term loan facility
will require quarterly payments of approximately $0.7 million with a final payment of the
outstanding principal balance due in October
2017.
Concurrent with the incremental term loan borrowing, CODI
amended the pricing terms of its term loan facility. Under the
terms of the amendment, amounts borrowed now bear interest at
either LIBOR plus a margin of 4.00%, as compared to the previous
LIBOR margin of 5.00% or base rate plus a margin of 3.00% as
compared to the previous base rate margin of 4.00%. In addition,
the LIBOR floor was reduced from 1.25% to 1.00%. 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 also announced it has amended the pricing terms of its
revolving credit facility, which is subject to borrowing base
restrictions. 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% to
3.50%, as compared to the previous margin that ranged from 3.00% to
4.00%, or base rate plus a margin ranging from 1.50% to 2.50% as
compared to the previous margin that ranged from 2.00% to 3.00%. In
addition, the unused fee for the revolving credit facility was
reduced from 1.00% to 0.75% when leverage is lower than a defined
ratio and 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.
Alan Offenberg, CODI's Chief
Executive Officer, commented, "We are pleased to be able to take
advantage of the favorable credit market conditions and amend our
term loan facility for the second time over the past year. Our
amended term loan facility, combined with our amended revolver,
further reduces CODI's borrowing costs and enhances the Company's
financial flexibility. We appreciate the ongoing support of our
lending group and remain focused on leveraging CODI's balance sheet
strength to invest in high-return organic growth initiatives and
capitalize on attractive platform and add-on acquisitions that are
accretive to Cash Flow."
Additional information on the amended 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 this week.
About Compass Diversified Holdings ("CODI")
CODI owns
and manages a diverse family of established North American middle
market businesses. Each of its eight current subsidiaries is a
leader in their 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 owners.
Our subsidiaries 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.ergobabycarriers.com);
- The design, manufacture and marketing of premium suspension
products for mountain bikes and powered off-road vehicles
(FOX, www.ridefox.com);
- 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, 2012 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