Compass Diversified Holdings, which owns Fox Racing Shox and CamelBak, continues to build its war chest. The diversified holding company said it secured $515 million in new debt financing to expand its existing businesses and finance acquisitions. The issues follows the company's announcement last week that it sold its largest portfolio company, Staffmark Holdings, to a Japanese company for $295 million.
Under the terms of the five-year revolving credit facility, which is subject to borrowing base restrictions, amounts borrowed bear interest at LIBOR plus a margin ranging from 3.00% to 4.00%, based on a leverage ratio defined in the credit agreement.
“We are very pleased to have completed this debt financing, which provides multiple benefits for our company,” said Alan Offenberg, CODI's CEO. “First, it allows us to refinance our existing debt and extend our maturities to October 2016, in the case of our revolver, and to October 2017 for the new term loan. Second, it ensures attractive debt terms and pricing over the next several years. Finally, the financing expands our overall debt capacity and enables us to improve our mix of debt and equity capitalization, as we pursue organic and acquisition-related growth opportunities. We appreciate the support of all the financial institutions who participated in this transaction, many of which were also participants in our prior facility.”