Compass Diversified Holdings Expands Term Loan Facility to $255 Million and Lowers Interest Rate by 1.25%

Compass Diversified Holdings

announced today that on April 2, 2012 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 99% of par value, increases the Company's aggregate outstanding borrowings under its term loan facility to approximately $255 million. The increased term loan facility will require quarterly payments of approximately $0.64 million with a final payment of the outstanding principal balance due in October 2017. CODI also announced that, concurrent with the incremental term loan borrowing, it has amended the pricing terms of its term loan facility. Under the terms of the amendment, amounts borrowed bear interest at LIBOR plus a margin of 5.00%, as compared to the previous margin of 6.00%. In addition, the LIBOR floor was reduced to 1.25% from 1.50%. All other terms of the credit agreement remain unchanged. In connection with the amended facility, the Company paid an amendment fee of approximately $2.25 million, equal to 1.00% of the outstanding portion of the term loan before the $30 million increase. CODI will utilize the net proceeds from the incremental term loan to reduce borrowings under its $290 million revolving credit facility.