Clarus gets $75 million facility due 2022 at Libor plus 150-200 bps

By Susanna Moon

Chicago, June 28 – Clarus Corp. said it has refinanced its loans with an upsized $75 million credit facility due 2022 through J.P. Morgan Chase Bank, NA.

The facility includes an uncommitted accordion for another $75 million that allows the facility to be increased to up to $150 million.

Interest on the loans ranges from Libor plus 150 basis points to 200 bps.

Proceeds will be used to pay down the company’s previous revolving credit facility as well as for working capital and general corporate purposes.

Clarus obtained the loans as part of its plans “to acquire and grow businesses that can generate attractive shareholder returns,” according to a company announcement.

The agreement replaces the company’s $40 million revolver “at more favorable rates,” the release noted.

The international product includes “the potential for local funding sources and the future ability for European and Asia-Pacific region subsidiaries to share borrowing base availability,” the release added.

“Our new, upsized revolving credit facility represents a strong pillar in our overall financial strategy and is supportive of our long-term growth plans,” Clarus chief financial officer Aaron Kuehne said in the press release.

“The key features of the agreement provide flexible covenants with structural enhancements for our strategically important, internationally based operations. In addition to significantly enhancing our financial flexibility, we also lowered our financing costs, further strengthening our ability to pursue additional accretive acquisitions in the consumer and outdoor industries.”

Clarus is a Stamford, Conn.-based company focused on the outdoor and consumer industries.

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