Rocky Brands, Inc. has signed a definitive debt refinance agreement with Bank of America, as agent. The new agreement, which reportedly amends and restates the company’s existing revolving credit facility, will serve to enhance the company’s cash flow and liquidity profile while permitting a more simplified capital structure.
Transaction Summary
The upsized, amended and extended ABL facility, agented by Bank of America, is comprised of a $175 million revolving credit facility and a $50 million term facility, amending and restating the company’s existing $175 million revolving credit facility with Bank of America.
Proceeds from the refinance were used to retire the company’s existing senior secured term loan facility agented by TCW Asset Management Company, LLC as of April 26, 2024.
The combined transactions are expected to generate net savings of approximately $2.9 million for the remainder of 2024, offset by fees and amortization associated with the retirement of the senior secured term loan facility of approximately $2.6 million. In 2025, the combined transactions are expected to generate a combined annualized savings of approximately $4.4 million.
The combined transactions extend the company’s debt maturities from March 2026 to April 2029.
“Throughout the past year, we have been focused on reducing debt and right-sizing inventory to strengthen the company’s balance sheet,” said Tom Robertson, COO and CFO. “We are pleased to further enhance our financial profile through this expansion of our existing relationship with Bank of America, which not only simplifies the capital structure, but also offers increased financial flexibility through more favorable terms. Looking forward, we believe these actions will position Rocky Brands to more effectively execute its growth strategies and increase value for shareholders.”
The company said it will provide additional details regarding the terms and conditions of the amended ABL facility in its Current Report on Form 8-K to be filed with the Securities and Exchange Commission (SEC).
Image courtesy Rocky Brands/Georgia Boot Company
