Compass Diversified Holdings (CODI) announced that the company intends to commence a private add-on offering of $200 million aggregate principal amount of the company’s 8.0 percent senior notes due 2026.
The additional notes will be issued under the indenture dated as of April 18, 2018, between the company and U.S. Bank National Association, as trustee. The company previously issued 8.0 percent senior notes due 2026 in the aggregate principal amount of $400 million under the indenture. The notes will mature on May 1, 2026. Interest will accrue on the additional notes from May 1, 2020, and the first interest payment date will be November 1, 2020.
The company intends to use the net proceeds from the sale of the additional notes and the trust’s recently announced common share offering to repay the outstanding balance on the company’s existing revolving credit facility, with the remainder of the net proceeds from this offering to be used to provide the company with liquidity to allow it to opportunistically pursue future acquisitions and for general corporate purposes.
The additional notes will be the company’s senior unsecured obligations and will not be guaranteed by any of the company’s subsidiaries.
