Cadre, a global company in the manufacturing and distribution of safety equipment and other related products for the law enforcement, first responder, military and nuclear markets, closed a new credit agreement that provides senior secured credit facilities of up to $590 million and matures in five years.
The financing consists of a five-year undrawn revolving credit facility of $175 million, a five-year term loan facility of $225 million, as well as two delayed draw term loans of up to $115 million and $75 million, respectively. The revolving credit facility and $225 million term loan are expected to be used for working capital and general corporate purposes, as well as to refinance existing outstanding debt. Subject to the conditions contained in the credit facilities, the $115 million delayed draw term loan is available to the company for six months from the closing of the facilities to support current acquisition activity, while the $75 million delayed draw term facility is available to the company for eighteen months from the closing to support future opportunities. The $75 million delayed draw term facility is also available for general corporate purposes. Combined with the approximately $93 million of cash and cash equivalents as of Sept. 30, 2024, this provides Cadre with approximately $458 million of capital to pursue its growth objectives.
“This strategic refinancing provides more scale and financial flexibility with favorable terms and extended maturities, enabling Cadre to continue to proactively seek to capitalize on meaningful organic and inorganic growth opportunities,” Warren Kanders, CEO and chairman of Cadre, said. “The agreement includes up to $190 million of delayed draw term loans, which, subject to the conditions contained in the credit facilities, are available as we actively pursue deals in our M&A funnel consistent with our patient and disciplined approach. We appreciate the strong support of our banking group and welcome new long-term financing partners, which is a testament to their confidence in our businesses’ attractive fundamentals moving forward.”
PNC Bank is the administrative agent and left-lead arranger. Bank of America, Regions Bank, U.S. Bank and Bank of Montreal acted as joint lead arrangers on the credit facilities. Additional lenders are Wells Fargo, SouthState Bank and EverBank.
