Compass Diversified Holdings Expands Term Loan Facility by $30 Million and Lowers Interest Rate by 1.25%

Wed Apr 3, 2013 4:05pm EDT

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Reduces Interest Rate for Revolving Credit Facility by 0.50%
WESTPORT, Conn.,  April 3, 2013  /PRNewswire/ -- Compass Diversified Holdings
(NYSE: CODI) ("CODI" or the "Company"), an owner of leading middle market
businesses, announced today that on  April 3, 2013  it exercised an option under
the Company's credit agreement, dated as of  October 27, 2011, to borrow an
incremental term loan in the amount of  $30 million. The incremental term loan,
arranged by TD Securities and issued at par value, increases the Company's
aggregate outstanding borrowings under its term loan facility to approximately 
$281.9 million. The increased term loan facility will require quarterly payments
of approximately  $0.7 million  with a final payment of the outstanding
principal balance due in  October 2017.

Concurrent with the incremental term loan borrowing, CODI amended the pricing
terms of its term loan facility. Under the terms of the amendment, amounts
borrowed now bear interest at either LIBOR plus a margin of 4.00%, as compared
to the previous LIBOR margin of 5.00% or base rate plus a margin of 3.00% as
compared to the previous base rate margin of 4.00%. In addition, the LIBOR floor
was reduced from 1.25% to 1.00%. CODI utilized  $27.0 million  of the net
proceeds from the incremental term loan to reduce borrowings outstanding under
its  $290 million  revolving credit facility. As a result, there are no current
borrowings outstanding under the revolving credit facility at closing.  

CODI also announced it has amended the pricing terms of its revolving credit
facility, which is subject to borrowing base restrictions. Under the terms of
the amendment, amounts borrowed now bear interest based on a leverage ratio
defined in the credit agreement at either LIBOR plus a margin ranging from 2.50%
to 3.50%, as compared to the previous margin that ranged from 3.00% to 4.00%, or
base rate plus a margin ranging from 1.50% to 2.50% as compared to the previous
margin that ranged from 2.00% to 3.00%. In addition, the unused fee for the
revolving credit facility was reduced from 1.00% to 0.75% when leverage is lower
than a defined ratio and the maturity date for the revolving credit facility was
extended by six months to  April 2017. All other terms of the credit agreement
remain unchanged.

Alan Offenberg, CODI's Chief Executive Officer, commented, "We are pleased to be
able to take advantage of the favorable credit market conditions and amend our
term loan facility for the second time over the past year. Our amended term loan
facility, combined with our amended revolver, further reduces CODI's borrowing
costs and enhances the Company's financial flexibility. We appreciate the
ongoing support of our lending group and remain focused on leveraging CODI's
balance sheet strength to invest in high-return organic growth initiatives and
capitalize on attractive platform and add-on acquisitions that are accretive to
Cash Flow."  

Additional information on the amended credit agreement will be available on the
Company's current report on Form 8-K that will be filed with the Securities and
Exchange Commission this week.  

About Compass Diversified Holdings ("CODI")
CODI owns and manages a diverse family of established North American middle
market businesses. Each of its eight current subsidiaries is a leader in their
niche market.   

CODI maintains controlling ownership interests in each of its subsidiaries in
order to maximize its ability to impact long term cash flow generation and
value. 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 to make cash distributions to its owners.

Our subsidiaries are engaged in the following lines of business:

* The manufacture of quick-turn, prototype and production rigid printed circuit
boards (Advanced  Circuits,;

* The design and manufacture of promotionally priced upholstered furniture
(American Furniture Manufacturing,;  

* The design and manufacture of medical therapeutic support surfaces and other
wound treatment devices (Anodyne Medical Device, also doing business and known
as  Tridien Medical,;  

* The manufacture of engineered magnetic solutions for a wide range of specialty
applications and end-markets (Arnold Magnetic Technologies,;  

* The design and manufacture of personal hydration products for outdoor,
recreation and military use   (CamelBak Products,;  

* The design and marketing of wearable baby carriers, strollers and related
products (ERGObaby,;

* The design, manufacture and marketing of premium suspension products for
mountain bikes and powered off-road vehicles (FOX,;  

* The design and manufacture of premium home and gun safes (Liberty Safe,

To find out more about Compass Diversified Holdings, please visit

This press release may contain certain forward-looking statements, including
statements with regard to the future performance of the Company. 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 Securities and Exchange Commission for the year ended 
December 31, 2012 and other filings with the Securities and Exchange Commission.
CODI undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.

SOURCE  Compass Diversified Holdings

Compass Diversified Holdings, James J. Bottiglieri, Chief Financial Officer,
203-221-1703,; or Investor Relations and Media Contacts:
The IGB Group, Leon Berman / Michael Cimini, 212-477-8438 / 212-477-8261, /

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