Johnson Outdoors Inc. expects to reduce fiscal year 2011 borrowing costs by more than 15% compared to fiscal year 2010 thanks to amendments to its credit agreements that will also make it easier for the company to make acquisitions.
The company was able to extend the debt agreements through November 2014 from their previous termination date in September 2012. It also reduced the interest rate on the revolving credit facilities by a basis point to LIBOR plus 2.75% with no floor and removed restriction on acquisitions.
JOUT can also draw an additional $25 million under the amendments.
“Importantly, these changes in terms and financing limits enhance our flexibility to react and capitalize on marketplace opportunities,” said David W. Johnson, VP and CFO. “We remain diligent and focused on driving progress against our strategic plan to help ensure sustained profitable growth.”