Company: CODI-PB
Filing Date: 2025-12-08
Form Type: 10-K/A
Source: 0001345126-25-000078
Chunk: 191

Company: Compass Diversified Holdings
Filing Date: 2025-12-08
Form: 10-K/A
Chunk 191
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ano was in compliance with the financial covenants included within their intercompany credit arrangements at December 31, 2024, based on the financial statements included in the 2024 Form 10-K but would not have been in compliance based upon the restated financials set forth in this 10-K/A.

Our primary source of cash is from the receipt of interest and principal on our outstanding loans to our businesses. Accordingly, we are dependent upon the earnings and cash flow of these businesses, which are available for (i) operating expen ses; (ii) payment of interest and principal on our outstanding debt; (iii) payments to CGM and Sostratus due or potentially due pursuant to the MSA and the LLC Agreement; (iv) cash distributio ns to our shareholders; and (v) pursuing future acquisitions. Payments made under (i) through (iii) above are required to be paid before distributions to shareholders and may be significant and exceed the funds held by us, which may require us to dispose of assets or incur debt to fund such expenditures. Each of our subsidiaries has various non-cancelable commitments in the ordinary course of business, including operating lease payments, and purchase obligations which include payments for materials and payments under employment agreements. On a consolidated basis at December 31, 2024, we had future lease obligations of $293.2 million and purchase obligations of $125.3 million.

We believe that we currently have sufficient liquidity and capital resources to meet our existing obligations, over the next twelve months and thereafter.

Financing Arrangements

2022 Credit Facility

On July 12, 2022, we entered into the 2022 Credit Facility to amend and restate the 2021 Credit Facility. The 2022 Credit Facility provides for the 2022 Revolving Credit Facility and also permits the LLC, prior to the applicable maturity date, to increase the revolving loan commitment and/or obtain term loans in an aggregate amount of up to $250 million, subject to certain customary restrictions and conditions. All amounts outstanding under the 2022 Revolving Credit Facility will become due on July 12, 2027, which is the maturity date of loans advanced under the 2022 Revolving Credit Facility. The 2022 Credit Facility also provides for the “2022 Term Loan. The 2022 Term Loan

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requires quarterly payments ranging from $2.5 million to $7.5 million, commencing September 30, 202