Johnson Outdoors Inc. has amended its credit agreements and, as a result, expects to reduce Fiscal Year 2011 borrowing costs by more than 15% compared to Fiscal Year 2010.

The highlights of the amended agreements include:

  • Extension of the debt agreements through November 2014 versus previous termination in September 2012.
  • Elimination of the LIBOR floor. Interest rate on the revolving credit facilities is currently based on LIBOR plus 2.75%. This compares favorably to the previous interest rate of LIBOR plus 3.25% and minimum LIBOR floor of 2.0%.
  • An option for an additional $25 million in financing availability under the existing conditions of the agreements.
  • Relaxed terms regarding permitted acquisitions.

“We are very pleased with our amended agreements having worked closely with our lenders to maintain rate adjustments which reflect the current lending environment as well as our improved position,” said David W. Johnson, VP and CFO. “Importantly, these changes in terms and financing limits enhance our flexibility to react and capitalize on marketplace opportunities. We remain diligent and focused on driving progress against our strategic plan to help ensure sustained profitable growth.”