Johnson Outdoors Inc. replaced its revolving credit facility with a new cash-flow based loan agreement with significantly fewer financial covenants and simplified reporting requirements compared to the company's previous asset-based revolving credit facility.
The company, which owns such brands as Ocean Kayak, Hummingbird, SCUBAPro, Eureka and Jetboil, said its new revolving credit facility provides financing up to $90 million and matures in five years, with an accordion provision for an incremental $25 million. The facility is reduced to $60 million from late June to late October, consistent with the company's reduced working capital needs during that period. The new revolving credit facility bears interest on a floating rate basis, with an interest rate based on LIBOR plus an applicable margin contingent on company performance.
PNC Capital Markets arranged the transaction, and PNC Bank is the lead agent of three participating lenders in this revolving credit facility. JOUT’s existing term debt facility, arranged by Ridgestone Bank of Brookfield, WI, remains in effect.
