Malibu Boats enters $350 million five-year revolving credit facility

By Wendy Van Sickle

Columbus, Ohio, July 12 – Malibu Boats Inc. subsidiary Malibu Boats, LLC entered into a third amended and restated credit agreement on July 8 providing for a $350 million revolver, of which $121.7 million was drawn at closing to refinance loans under the borrower’s existing credit agreement, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

The new revolver matures on July 8, 2027 and bears interest at term SOFR plus a margin ranging from 125 basis points to 200 bps, based on the consolidated leverage ratio of the borrower and its subsidiaries. There is a commitment fee ranging from 15 bps to 30 bps, also based on consolidated leverage ratio.

There is an accordion feature for up to an additional $200 million.

The credit agreement requires compliance with a minimum ratio of EBITDA to interest expense and a maximum ratio of total debt to EBITDA.

Truist Securities, Inc. and JPMorgan Chase Bank, NA are the lead arrangers and bookrunners.

JPMorgan is the syndication agent, and First Tennessee Bank NA and Regions Bank are the co-documentation agents.

Truist Bank is the administrative agent.

Proceeds of future borrowings may be used for capital expenditures, permitted acquisitions, working capital and general corporate purposes.

Malibu Boats is a Loudon, Tenn.-based designer, manufacturer and marketer of performance sport boats.

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