West Marine reaches agreement with term loan lenders on exchange offer

By Sarah Lizee

Olympia, Wash., March 1 – West Marine Inc. (Rising Tide Holdings Inc.) recently reached a transaction support agreement with a group of existing term loan lenders that contemplates an exchange offer, according to a release from Moody’s Investors Service.

Under the exchange, a new $30 million first-in, last-out facility will be put in place and consenting holders of the company’s existing first-lien term loan will be offered a new first-lien term loan (tranche 1A) that will rank junior in priority payment and security to the asset-based facility and FILO.

A new tranche 1B (junior to tranche 1A) will consist of 50% of the existing incremental first-lien debt issued to the company by its sponsor, L Catterton, 50% of consenting parties of the existing second-lien term loan and non-consenting parties of the existing first-lien term loan.

The new tranche 2A (junior to tranche 1B) will consist of the remaining 50% of the existing incremental first-lien debt issued to the company by L Catterton and the remaining consenting parties of the existing second-lien term loan. Non-consenting parties of the existing second-lien term loan will rank junior to tranche 2A.

Moody’s downgraded West Marine’s first-lien term loan and second-lien term loan ratings to C from Caa3 and C from Ca, respectively, as a result of the transaction.

West Marine is an omni-channel provider of aftermarket products and services to the boating, fishing, sailing and watersports markets platform.

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