Rocky Brands, Inc. issued $40 million worth of fixed rate Senior Notes in a private placement with Laminar Direct Capital and Whitebox Advisors that allows the company to pay off outstanding debt as well as to gain cash for working capital and general corporate purposes. As a result of the paying off of certain segments of its debt, the company will record a non-cash charge of approximately $0.7 million, or 8 cents per diluted share in the second quarter. Piper Jaffray acted as lead arranger on this transaction.
The company used the proceeds from the private placement to repay all outstanding amounts under its existing term loans, including a $15 million term loan with a second lien lender at an interest rate of LIBOR plus 8.5% and $16 million amortizing term loans with GMAC Commercial Finance at an interest rate of LIBOR plus 3.5%. The remaining proceeds will be used for working capital and general corporate purposes.
