K2 Inc. has closed its previously announced acquisition of Marmot Mountain Ltd. The purchase price was approximately $84 million plus the assumption of debt. Additionally, K2 announced that it has completed several financing transactions to support current and future acquisitions.
K2 has issued $200.0 million in aggregate principal amount of 7 3/8% senior notes due 2014. The net proceeds of $194.5 million from the offering of senior notes were funded into an escrow account pending the consummation of the previously announced acquisitions of Volkl Sports and Marker Group, which are currently expected to close by mid-July.
The company also completed its sale of 6.4 million shares of its common stock to a group of underwriters led by J.P Morgan Securities Inc., which included 400,000 shares sold pursuant to an over-allotment option. The net proceeds to K2 from the offering were approximately $94.0 million.
K2 has executed an amended and restated credit facility led by J.P. Morgan Chase Bank providing for a $250.0 million revolving loan, with an option to expand the facility to $350.0 million subject to certain conditions.
