Business news :Confluence Watersports Parent Refinances Recourse Debt

American Capital, Ltd., which has owned a controlling interest in Confluence Watersports since 2005,  completed the refinancing of all of its recourse debt with a new four-year $600 million institutional term loan facility with J.P. Morgan Chase Bank, N.A. as administrative agent and collateral agent.

American Capital is a publicly traded private equity firm that  manages $17 billion of assets, including Confluence Watersports, which owns the Adventure Technology, Bomber Gear, Harmony, Mad River Canoe, Wilderness Systems, Dagger, Wavesport paddlesports brands.

J.P. Morgan Securities LLC, BMO Capital Markets Corp. and UBS Securities LLC were joint lead arrangers and joint bookrunners on the transaction. Citibank, N.A., Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA also served as managing agents. In addition to repaying the existing recourse debt, the proceeds will be used for working capital and general corporate purposes.
The term loan facility is priced at LIBOR plus 4.25%, with a LIBOR floor of 1.25%, and has a first lien on certain non-securitized assets of the company and a second lien on most of its remaining non-securitized assets.

American Capital also announced that it has obtained a new four-year $250 million senior secured revolving credit facility with J.P. Morgan Chase Bank, N.A. as administrative agent and collateral agent. J.P. Morgan Securities LLC, BMO Capital Markets Corp. and UBS Securities LLC were joint lead arrangers and joint bookrunners on the transaction. Citibank, N.A., Credit Suisse Securities (USA) LLC, Bank of America, N.A. and Goldman Sachs Bank USA served as managing agents. Draws on the revolving credit facility will be used for working capital and general corporate purposes.

The revolving credit facility has a three year revolving period and may be expanded through additional commitments up to $375 million. The revolving credit facility is priced at LIBOR plus 3.75%, and has a first lien on certain non-securitized loan assets of the company and a second lien on most of its remaining non-securitized assets.

"We are extremely pleased to announce our new term debt financing and revolving credit facility," said Malon Wilkus, Chairman and CEO. "We enjoyed strong demand and received the support of an excellent roster of debt investors. These facilities increase our capital availability and lower our interest cost, which will enhance our ability to make attractive new investments."

(SportsOneSource Media)