Navigation Links
Compass Diversified Holdings Expands Term Loan Facility by $30 Million and Lowers Interest Rate by 1.25%
Date:4/3/2013

WESTPORT, Conn., April 3, 2013 /PRNewswire/ -- Compass Diversified Holdings (NYSE: CODI) ("CODI" or the "Company"), an owner of leading middle market businesses, announced today that on April 3, 2013 it exercised an option under the Company's credit agreement, dated as of October 27, 2011, to borrow an incremental term loan in the amount of $30 million. The incremental term loan, arranged by TD Securities and issued at par value, increases the Company's aggregate outstanding borrowings under its term loan facility to approximately $281.9 million. The increased term loan facility will require quarterly payments of approximately $0.7 million with a final payment of the outstanding principal balance due in October 2017.

Concurrent with the incremental term loan borrowing, CODI amended the pricing terms of its term loan facility. Under the terms of the amendment, amounts borrowed now bear interest at either LIBOR plus a margin of 4.00%, as compared to the previous LIBOR margin of 5.00% or base rate plus a margin of 3.00% as compared to the previous base rate margin of 4.00%. In addition, the LIBOR floor was reduced from 1.25% to 1.00%. CODI utilized $27.0 million of the net proceeds from the incremental term loan to reduce borrowings outstanding under its $290 million revolving credit facility. As a result, there are no current borrowings outstanding under the revolving credit facility at closing.

CODI also announced it has amended the pricing terms of its revolving credit facility, which is subject to borrowing base restrictions. Under the terms of the amendment, amounts borrowed now bear interest based on a leverage ratio defined in the credit agreement at either LIBOR plus a margin ranging from 2.50% to 3.50%, as compared to the previous margin that ranged from 3.00% to 4.00%, or base rate plus a margin ranging from 1.50% to 2.50% as compared to the previous margin that ranged from 2.00% to 3.00%. In addition, the unused fee for the revolving credit facility was reduced from 1.00% to 0.75% when leverage is lower than a defined ratio and the maturity date for the revolving credit facility was extended by six months to April 2017. All other terms of the credit agreement remain unchanged.

Alan Offenberg , CODI's Chief Executive Officer, commented, "We are pleased to be able to take advantage of the favorable credit market conditions and amend our term loan facility for the second time over the past year. Our amended term loan facility, combined with our amended revolver, further reduces CODI's borrowing costs and enhances the Company's financial flexibility. We appreciate the ongoing support of our lending group and remain focused on leveraging CODI's balance sheet strength to invest in high-return organic growth initiatives and capitalize on attractive platform and add-on acquisitions that are accretive to Cash Flow."

Additional information on the amended credit agreement will be available on the Company's current report on Form 8-K that will be filed with the Securities and Exchange Commission this week.

About Compass Diversified Holdings ("CODI")
CODI owns and manages a diverse family of established North American middle market businesses. Each of its eight current subsidiaries is a leader in their niche market. 

CODI maintains controlling ownership interests in each of its subsidiaries in order to maximize its ability to impact long term cash flow generation and value. The Company provides both debt and equity capital for its subsidiaries, contributing to their financial and operating flexibility. CODI utilizes the cash flows generated by its subsidiaries to invest in the long-term growth of the Company and to make cash distributions to its owners.

Our subsidiaries are engaged in the following lines of business:

  • The manufacture of quick-turn, prototype and production rigid printed circuit boards (Advanced Circuits, www.advancedcircuits.com);

  • The design and manufacture of promotionally priced upholstered furniture (American Furniture Manufacturing, www.americanfurn.net);

  • The design and manufacture of medical therapeutic support surfaces and other wound treatment devices (Anodyne Medical Device, also doing business and known as Tridien Medical, www.tridien.com);

  • The manufacture of engineered magnetic solutions for a wide range of specialty applications and end-markets (Arnold Magnetic Technologies, www.arnoldmagnetics.com);

  • The design and manufacture of personal hydration products for outdoor, recreation and military use   (CamelBak Products, www.camelbak.com);

  • The design and marketing of wearable baby carriers, strollers and related products (ERGObaby, www.ergobabycarriers.com);

  • The design, manufacture and marketing of premium suspension products for mountain bikes and powered off-road vehicles (FOX, www.ridefox.com);

  • The design and manufacture of premium home and gun safes ( Liberty Safe , www.libertysafe.com).

To find out more about Compass Diversified Holdings, please visit www.compassdiversifiedholdings.com.

This press release may contain certain forward-looking statements, including statements with regard to the future performance of the Company. Words such as "believes," "expects," "projects," and "future" or similar expressions, are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and some of these factors are enumerated in the risk factor discussion in the Form 10-K filed by CODI with the Securities and Exchange Commission for the year ended December 31, 2012 and other filings with the Securities and Exchange Commission. CODI undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


'/>"/>
SOURCE Compass Diversified Holdings
Copyright©2012 PR Newswire.
All rights reserved

Related medicine technology :

1. Compass Diversified Holdings Provides Shareholders with 2012 Tax Information
2. Compass Diversified Holdings Announces Third Quarter 2012 Earnings and Conference Call Information
3. H. D. Smith Establishes Specialty Solutions Organization And Realigns Senior Leadership To Support Growing Geographic Reach, Diversified Businesses
4. Hill-Rom Holdings, Inc. Hosts Fiscal 2013 Second Quarter Earnings Conference Call and Webcast
5. Organovo Holdings, Inc. Announces Change of Fiscal Year
6. PDP Holdings, LLC Announces Support for Health and Human Services Office of Inspector General Guidance
7. SARcode Bioscience Announces Acquisition by Shire US Holdings Inc.
8. Mr. William Lerner, Esq. nominated to the Board of Directors of Sanomedics International Holdings, Inc.
9. Zimmer Holdings to Present at Canaccord Genuitys Musculoskeletal Conference
10. HIMMS 2013 - Santa Rosa Holdings Hosts Healthcare Industry Leaders Tommy Thompson and Fred Brown March 5th in New Orleans
11. Zimmer Holdings to Present at Barclays Capital 2013 Global Healthcare Conference
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:5/10/2017)... Global Health Intelligence (GHI), the leading healthcare data analytics ... 2017 ranking of the Best-Equipped Hospitals in Latin America ... GHI,s hospitals database for Latin America , which is ... database covers 86% of the hospitals in Latin ... each institution in key areas such as beds, medical specialties, ...
(Date:5/9/2017)... , May 9, 2017  Demonstrating its ... board of directors for the Pharmaceutical Research and ... for membership. Biopharmaceutical companies will now have to ... order to be eligible to join PhRMA. ... the board is sending a clear message that ...
(Date:5/6/2017)... IRVING, Texas , May 5, 2017   Provista ... 1994 with more than 200,000 customers, today announced Jim ... brings a wealth of executive and business experience to Provista, ... a compounding pharmacy in California . He ... "Jim is a great fit for Provista," says ...
Breaking Medicine Technology:
(Date:5/27/2017)... ... May 27, 2017 , ... From May 21-23, hearing healthcare professionals ... event was held at the Marriott Syracuse Downtown Hotel in Syracuse, New York. ... network of independent hearing healthcare providers to help them stay ahead in the industry. ...
(Date:5/26/2017)... Boston, Massachsetts (PRWEB) , ... May 26, 2017 ... ... communities will gather at Boston CEO 2017 on May 30th and 31st at ... off-the-record networking forum for leading executives in the life sciences, offering exclusive access ...
(Date:5/26/2017)... ... May 26, 2017 , ... A new analysis of community ... healthiest seniors are located in the Midwest. With the average cost of healthcare rising ... are concerned with both the quality and affordability of where they live. An annual ...
(Date:5/26/2017)... MD (PRWEB) , ... May 26, 2017 , ... After ... anti-stress Antzy Top gadget will continue to be available at a discounted crowdfunding price ... deal with stress wherever they are, I also wanted to bring a fidget toy ...
(Date:5/26/2017)... (PRWEB) , ... May 26, 2017 , ... Dr. Alex ... proud to announce a new, informational blog post on insurance options. If a Bay ... insurance plans may help save time and money. Visiting an in-network provider for a ...
Breaking Medicine News(10 mins):