Compass Diversified Holdings Announces Amendment of its Credit Agreement
Compass Diversified Holdings (NYSE: CODI) has announced a significant amendment to its Credit Agreement with Bank of America on January 9, 2025. The amendment includes two key components: an immediate $200 million Incremental Term Loan and $100 million in Delayed Draw Term Loan Commitments available until July 9, 2025.
The funds will support new acquisitions, working capital, capital expenditures, and general corporate purposes. The Incremental Term Loan requires quarterly repayments ranging from $3.75 million to $11.25 million starting March 31, 2025, with final payment due July 12, 2027. The Delayed Draw Term Loan allows for up to two draws and can be reduced or terminated with five days' notice.
Compass Diversified Holdings (NYSE: CODI) ha annunciato un'importante modifica al suo Contratto di Credito con Bank of America il 9 gennaio 2025. La modifica include due componenti chiave: un Prestito Incrementale a Termine di $200 milioni immediato e Impegni di Prestito a Termine con Rinvio di $100 milioni disponibili fino al 9 luglio 2025.
I fondi supporteranno nuove acquisizioni, capitale circolante, spese in conto capitale e finalità aziendali generali. Il Prestito Incrementale a Termine prevede rimborsi trimestrali che vanno da $3,75 milioni a $11,25 milioni a partire dal 31 marzo 2025, con il pagamento finale previsto per il 12 luglio 2027. Il Prestito a Termine con Rinvio consente fino a due prelievi e può essere ridotto o terminato con un preavviso di cinque giorni.
Compass Diversified Holdings (NYSE: CODI) ha anunciado una modificación significativa a su Acuerdo de Crédito con Bank of America el 9 de enero de 2025. La modificación incluye dos componentes clave: un Préstamo Incremental a Plazo de $200 millones inmediato y Compromisos de Préstamo a Plazo diferido de $100 millones disponibles hasta el 9 de julio de 2025.
Los fondos apoyarán nuevas adquisiciones, capital de trabajo, gastos de capital y fines corporativos generales. El Préstamo Incremental a Plazo requiere reembolsos trimestrales que van de $3,75 millones a $11,25 millones comenzando el 31 de marzo de 2025, con el pago final debido el 12 de julio de 2027. El Préstamo a Plazo diferido permite hasta dos retiros y puede ser reducido o terminado con un aviso de cinco días.
컴패스 다이버시파이드 홀딩스 (NYSE: CODI)는 2025년 1월 9일 뱅크 오브 아메리카와의 신용 계약에 대한 중요한 수정안을 발표했습니다. 이 수정안에는 두 가지 주요 구성 요소가 포함되어 있습니다: 즉각적인 2억 달러의 증액 기간 대출과 1억 달러의 지연 인출 기간 대출 약정이 있으며, 이는 2025년 7월 9일까지 이용 가능합니다.
이 자금은 새로운 인수, 운영 자본, 자본 지출 및 일반 기업 용도를 지원할 것입니다. 증액 기간 대출은 2025년 3월 31일부터 시작하여 $375만 달러에서 $1,125만 달러 사이의 분기별 상환을 요구하며, 최종 지불은 2027년 7월 12일에 만료됩니다. 지연 인출 기간 대출은 최대 두 번의 인출을 허용하며, 5일 사전에 통지하고 축소하거나 종료할 수 있습니다.
Compass Diversified Holdings (NYSE: CODI) a annoncé une modification significative de son Accord de Crédit avec Bank of America le 9 janvier 2025. La modification comprend deux éléments clés : un Prêt Terminé Incremental de 200 millions de dollars immédiat et des Engagements de Prêt Terminé avec Tirage Différé de 100 millions de dollars disponibles jusqu'au 9 juillet 2025.
Les fonds soutiendront de nouvelles acquisitions, le fonds de roulement, les dépenses d'investissement et des fins d'entreprise générales. Le Prêt Terminé Incremental nécessite des remboursements trimestriels allant de 3,75 millions à 11,25 millions de dollars, à partir du 31 mars 2025, avec le paiement final dû le 12 juillet 2027. Le Prêt Terminé avec Tirage Différé permet jusqu'à deux tirages et peut être réduit ou résilié avec un préavis de cinq jours.
Compass Diversified Holdings (NYSE: CODI) hat am 9. Januar 2025 eine bedeutende Änderung seines Kreditvertrags mit der Bank of America bekannt gegeben. Die Änderung umfasst zwei wesentliche Komponenten: einen sofortigen erhöhten Terminkredit über 200 Millionen US-Dollar und Terminkreditverpflichtungen zur verzögerten Auszahlung über 100 Millionen US-Dollar, die bis zum 9. Juli 2025 verfügbar sind.
Die Mittel werden zur Unterstützung neuer Akquisitionen, des Betriebskapitals, der Investitionen in Anlagevermögen und allgemeiner Unternehmenszwecke verwendet. Der erhöhte Terminkredit erfordert vierteljährliche Rückzahlungen zwischen 3,75 Millionen und 11,25 Millionen US-Dollar, beginnend am 31. März 2025, mit der endgültigen Zahlung, die am 12. Juli 2027 fällig ist. Der verzögerte Terminkredit erlaubt bis zu zwei Auszahlungen und kann mit einer Frist von fünf Tagen reduziert oder gekündigt werden.
- Secured additional $300 million in total financing capacity
- Flexible payment terms with graduated repayment schedule
- Extended financing availability through July 2027
- Multiple draw options available for the delayed facility
- Increased debt obligation with new quarterly repayment requirements
- to two draws on the delayed draw facility
Insights
The amendment to CODI's credit facility represents a substantial enhancement to their financial flexibility, securing
The repayment schedule, ranging from
The ability to make two draws on the delayed portion by July 2025 suggests CODI may have specific acquisition targets in their pipeline. For retail investors: Think of this like securing both a immediate home improvement loan plus a pre-approved future credit line - it provides both immediate capital and future flexibility without the pressure to use it all at once.
The amendment's structure reveals sophisticated debt management - the split between immediate and delayed draw components optimizes interest expense while maintaining acquisition firepower. The quarterly amortization schedule demonstrates prudent risk management, forcing gradual deleveraging rather than relying on bullet maturities.
The retention of existing credit agreement terms suggests CODI maintained strong negotiating leverage with their banking syndicate. Bank of America's continued lead position as Administrative Agent provides stability to the lending relationship. For the average investor: This is similar to having a strong credit score that lets you negotiate better loan terms while keeping your existing credit card benefits intact.
WESTPORT, Conn., Jan. 10, 2025 (GLOBE NEWSWIRE) -- Compass Diversified Holdings (NYSE: CODI) (“CODI” or the “Company”), an owner of leading middle market businesses, announced that on January 9, 2025, it entered into a First Incremental Facility Amendment (the “Amendment”) to its existing Credit Agreement with Bank of America, N.A., as Administrative Agent for the Lenders party thereto.
The Amendment modifies the Company’s Third Amended and Restated Credit Agreement, dated as of July 12, 2022, as amended, among the Company, the Lenders, the Administrative Agent and the other financial institutions party thereto, to provide for (a) an additional advance of the term loan in the aggregate amount of
The proceeds from the Incremental Term Loan and the Incremental Delayed Draw Term Loan will be used for new acquisitions, working capital, capital expenditures and other general corporate purposes. The Incremental Term Loan, along with the existing term loan under the Credit Agreement, will require quarterly repayments of principal amount ranging from
Commencing on the first quarter ending after the earlier of (i) the date Incremental Delayed Draw Term Loan is fully drawn and (ii) the end of the Availability Period, the Company will be required to make quarterly repayments of principal amount ranging from
About Compass Diversified
Since its IPO in 2006, CODI has consistently executed its strategy of owning and managing a diverse set of highly defensible, middle-market businesses across the industrial, branded consumer and healthcare sectors. The Company leverages its permanent capital base, long-term disciplined approach, and actionable expertise to maintain controlling ownership interests in each of its subsidiaries, maximizing its ability to impact long-term cash flow generation and value creation. 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 has consistently generated strong returns through its culture of transparency, alignment and accountability. For more information, please visit compassdiversified.com.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements with regard to the expectations related to the future performance of CODI. Words such as "believes," "expects," “will,” “anticipates,” “intends,” “continue,” "projects," “potential,” “assuming,” 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, some of which are not currently known to CODI. In addition to factors previously disclosed in CODI’s reports filed with the SEC, the following factors, among others, could cause actual results to differ materially from forward-looking statements: changes in the economy, financial markets and political environment; risks associated with possible disruption in CODI’s operations or the economy generally due to terrorism, natural disasters, or social, civil and political unrest; future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); and other considerations that may be disclosed from time to time in CODI’s publicly disseminated documents and filings. Further information regarding CODI and factors which could affect the forward-looking statements contained herein can be found in CODI’s annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Forward-looking statements speak only as of the date they are made. 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
Compass Diversified
irinquiry@compassdiversified.com
Gateway Group
Cody Slach
949.574.3860
CODI@gateway-grp.com
Media Relations
Compass Diversified
mediainquiry@compassdiversified.com
The IGB Group
Leon Berman
212.477.8438
lberman@igbir.com
FAQ
What is the total amount of new financing secured by CODI in January 2025?
When does CODI's new Incremental Term Loan repayment schedule begin?
What is the final maturity date for CODI's new credit facility?
How many draws can CODI make on the Delayed Draw Term Loan Facility?
What are the intended uses for CODI's new credit facility funds?
