Business news : Johnson Outdoors Replaces Revolving Credit Facility

Johnson Outdoors Inc. replaced its revolving credit facility with a new streamlined capital structure that it expects will reduce annual borrowing costs.

Johnson, which owns such brands as Ocean Kayak, Hummingbird marine electronics , SCUBAPro, Eureka and Jetboil, saod key highlights of the new debt financing are:

• A new cash-flow based loan agreement with significantly fewer financial covenants and simplified reporting requirements compared to the company's previous asset-based facility.
• A revolving credit facility that provides financing up to $90 million which matures in five years, with an accordion provision for an incremental $25 million. The facility is reduced to $60 million from late June to late October, consistent with the company's reduced working capital needs during that period. PNC Capital Markets arranged the transaction, and PNC Bank is the lead agent of three participating lenders in this revolving credit facility.
• The new revolving credit facility bears interest on a floating rate basis, with an interest rate based on LIBOR plus an applicable margin contingent on company performance.

The company's existing term debt facility, arranged by Ridgestone Bank of Brookfield, Wisconsin, remains in effect.

"Our new credit agreement recognizes the success of our efforts to strengthen operations and deliver consistently improved financial performance, and also reaffirms the confidence of our lenders in our ability to achieve sustained, profitable growth long-term," said David W. Johnson, Vice President and Chief Financial Officer.

By press release through sportsonesorce