Compass Diversified (CODI) provided an update on its recent refinancing and strengthened capital structure.
Following today’s closing of CODI’s previously announced offering of $1.0 billion of 5.250 percent senior unsecured notes due 2029 in a private transaction and a concurrent refinancing transaction, it has repaid the debt under the company’s previous credit facilities and, effective April 1, 2021, will redeem the company’s 8.000 percent senior notes due 2026. In addition, the company now has access to $569 million of its $600 million revolving credit facility available to fund future acquisitions.
“We are pleased to complete this refinancing and strengthen CODI’s capital structure to reduce our weighted average cost of debt, extend our maturity profile, and increase our liquidity,” said Elias Sabo, CEO. “Evaluating more efficient ways to tap into the capital markets remains a priority for our team. With access to capital at a lower cost, we believe we are better positioned to continue to leverage our permanent capital structure to our advantage as we seek to opportunistically acquire businesses and generate significant shareholder value.”
CODI’s business holdings include 5.11, Liberty Safe, Boa Technology, Marucci Sports, and Velocity Outdoor in the active lifestyle space. Other businesses include Advanced Circuits, Arnold Magnetic Technologies, Ergobaby, Foam Fabricators, and Sterno.
Photo courtesy 5.11
