BofA Merrill, Others Provide Compass Diversified Facility
Compass Diversified Holdings announced it has signed a credit agreement for a revolving credit facility totaling $400 million and a term loan facility in the amount of $325 million. The two facilities, led by Bank of America Merrill Lynch, SunTrust Robinson Humphrey, TD Securities and U.S. Bank combine for $725 million in new debt financing and replace the company’s previous revolving credit facility and term loan facility.
Under the terms of the five-year revolving credit facility, which is subject to borrowing base restrictions, amounts borrowed bear interest at LIBOR plus a margin ranging from 2.00% to 2.75%, based on a leverage ratio defined in the credit agreement.
Under the terms of the seven-year term loan facility, amounts borrowed bear interest at LIBOR plus a margin of 3.25%. The term loan facility requires quarterly payments of approximately $0.81 million, with a final payment of the outstanding principal balance due June 2021.
The proceeds will fund, among other things, future expansion opportunities at its existing subsidiary companies, pursue new platform acquisition opportunities and provide for working capital and general corporate uses.
Compass Diversified Holdings owns and manages a diverse family of established North American middle-market businesses.