Company: CODI-PB
Filing Date: 2025-01-10
Form Type: 8-K
Source: 0001345126-25-000006
Chunk: 0

Company: Compass Diversified Holdings
Filing Date: 2025-01-10
Form: 8-K
Item: Item 1.01
Chunk 0
---
Item 1.01 Entry into a Material Definitive Agreement

On January 9, 2025, Compass Group Diversified Holdings LLC (the “ Company”), sponsor of Compass Diversified Holdings (“ Holdings” and, together with the Company, collectively “ CODI,” “us,” “we” or “our”), entered into a First Incremental Facility Amendment (the “ Amendment”) to its existing Credit Agreement (as defined below). The Amendment was by and among the Company, the lenders party thereto (the “ Lenders”), and Bank of America, N. A., as administrative agent for the Lenders (the “ Administrative Agent”). Terms not defined in this Item 1.01 shall have the meanings ascribed to them in the Credit Agreement.

The Amendment modifies the Company’s Third Amended and Restated Credit Agreement, dated as of July 12, 2022, as amended, among the Company, the Lenders, the Administrative Agent and [the other financial institutions party thereto] (the “ Credit Agreement”), to provide for (a) an additional advance of the term loan in the aggregate amount of $200 million (the “ Incremental Term Loan”) on the date of the Amendment, and (b) delayed draw term loan commitments in the aggregate amount of $100 million (the “ Incremental Delayed Draw Term Loan Commitments,” and the loan drawn thereunder is referred to herein as the “ Incremental Delayed Draw Term Loan”), which may be reduced or terminated by the Company upon five business days’ notice and pursuant to which the Company may make no more than two draws by July 9, 2025. The proceeds from the Incremental Term Loan and the Incremental Delayed Draw Term Loan will be used for new acquisitions, working capital, capital expenditures and other general corporate purposes.

The Incremental Term Loan, along with the existing term loan under the Credit Agreement, will require quarterly repayments of principal amount ranging from $3.75 million to $11.25 million, commencing Marc h 31, 2025, with a final payment of principal and interest due on July 12, 2027.

The Company will pay to the Administrative Agent, for the account of each Lender in accordance with its applicable percentage of the Incremental Delayed Draw Term Loan Commitments, a commitment fee equal to the product of (i) a rate ranging from 0.25% to 0.45% per annum, based on the Consolidated Total Leverage Ratio, times