AirBoss of America entered into new senior secured credit facilities consisting of aggregate financing of up to $180 million, which are replacing its current senior secured revolving credit facilities, and an update on its previously announced strategic transition.
The new credit facilities consist of a revolving asset-based credit facility co-arranged by The Toronto-Dominion Bank and Canadian Imperial Bank of Commerce and a non-revolving term loan facility provided by Great Rock Capital Partners. The commitments under the ABL facility, when fully syndicated, are expected to be $125 million and the term facility is for $55 million. The maturity date under both facilities is Nov. 29, 2027.
Additional key terms of the new credit facilities include the following:
- Reducing the maximum applicable margin on revolving debt from 450 basis points to 225 basis points
- Dividend increases above current levels are subject to certain financial conditions;
- Meeting certain minimum adjusted EBITDA and liquidity requirements; and
- Covenants related to annual capital expenditures.
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“The new credit facilities will provide AirBoss with the financial flexibility it requires to continue executing our strategic transition,” Chris Bitsakakis, president and co-CEO of AirBoss, said. “We are excited to work with our new team of financing partners, as we continue our goal of transforming AirBoss into a global market leader in the custom rubber compounding market and the industries which we serve. We believe the new credit facilities are in the best interests of our shareholders and other stakeholders as they will enable us to continue focusing on long-term growth and creating sustainable value.”
