Compass Diversified Holdings (CODI), owner of 5.11, Crosman, Liberty Safe and a number of other middle market businesses priced a $100 million public offering of 4 million of its 7.875 percent series B fixed-to-floating rate cumulative preferred shares.
The offering has a liquidation preference of $25.00 per share. Shares of CODI closed at $16.35, down 5 cents Wednesday in over-the-counter trading.
The company has granted the underwriters a 30-day over-allotment option to purchase up to an additional 600,000 Series B Preferred Shares. CODI intends to use the net proceeds from the offering to repay a portion of the outstanding balance of its revolving credit facility and for general corporate purposes. The closing is expected to occur on or about March 13, 2018, subject to customary closing conditions.
Distributions will be payable on the Series B Preferred Shares from and including the original issue to date, but excluding April 30, 2028 at a fixed rate equal to 7.875 percent per annum of the stated liquidation preference of $25.00 per share and from and including April 30, 2028, at a floating rate equal to three-month LIBOR plus a spread of 4.985 percent.
BofA Merrill Lynch, Morgan Stanley and UBS Investment Bank are acting as joint book-running managers on the offering. J.P. Morgan, Janney Montgomery Scott and William Blair are acting as co-managers for the offering.
Companies owned by CODI include 5.11, Advanced Circuits, Arnold Magnetic Technologies, Clean Earth, Crosman, Ergobaby, Foam Fabricators, Liberty Safe, Manitoba Harvest and Sterno Products.
