Compass Diversified Announces Pricing of a Private Offering of $1 Billion of 5.250% Senior Unsecured Notes Due 2029
Compass Diversified (NYSE: CODI) announced the pricing of $1 billion in 5.250% senior unsecured notes due 2029, set to close on March 23, 2021. The notes will be senior unsecured obligations, not guaranteed by subsidiaries. Proceeds will be used to repay existing debt and redeem 8.000% Senior Notes due 2026. The offering targets qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S. The notes will not be registered under the Securities Act, limiting their sales without registration.
- Issuance of $1 billion in 5.250% senior unsecured notes may provide favorable interest rates.
- Proceeds aimed at debt repayment could improve financial leverage and reduce interest expenses.
- Notes are senior unsecured, potentially increasing financial risk if the company faces liquidity issues.
- The redemption of high-interest 8.000% Senior Notes may reflect ongoing debt management but does not eliminate financial obligations.
WESTPORT, Conn., March 03, 2021 (GLOBE NEWSWIRE) -- Compass Diversified (NYSE: CODI) (“CODI”), a Delaware statutory trust and the sole owner of
The Notes will be the Company’s senior unsecured obligations and will not be guaranteed by any of the Company’s subsidiaries.
The Company intends to use the net proceeds of the Notes offering to repay debt under the Company’s existing credit facilities and to redeem the Company’s
The offering is currently expected to close on March 23, 2021, subject to customary conditions.
The Notes will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. The Notes will be offered only to qualified institutional buyers in accordance with Rule 144A and to non-U.S. Persons under Regulation S under the Securities Act.
This press release does not and will not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor will there be any sale of the Notes in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.
Forward Looking Statements
This press release may contain certain forward-looking statements, including statements with regard to the future performance of CODI and the Notes offering. 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 SEC for the year ended December 31, 2020 and other filings with the SEC. Except as required by law, CODI undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
| Investor Relations: | Media Contact: |
| The IGB Group | Joele Frank, Wilkinson Brimmer Katcher |
| Leon Berman | Jon Keehner / Kate Thompson / Lyle Weston |
| 212-477-8438 | 212-355-4449 |
| lberman@igbir.com |
FAQ
What is the amount and interest rate of the new notes issued by CODI?
What will Compass Diversified do with the proceeds from the notes offering?
When is the expected closing date for the notes offering by CODI?
Who can purchase the new notes issued by Compass Diversified?
Why are the senior unsecured notes not registered under the Securities Act?
