Crossmark exchanges $490 million of term loans, reduces debt by 75%

By Sarah Lizee

Olympia, Wash., July 29 – Crossmark Holdings, Inc. announced that it completed an exchange offer with consent from 100% of its lenders that reduced its total long-term debt by about 75%, according to a press release.

Under the exchange offer, the company exchanged $400 million of outstanding first-lien term loans for 100% of the new equity of Crossmark, subject to dilution by some warrants issued and a new management incentive plan, and $75 million of new debt.

It also exchanged $90 million of second-lien term loans for warrants entitling holders to receive 7.5% of the equity of Crossmark upon exercise, subject to dilution.

In connection with closing the exchange offer, Crossmark also entered into a new $75 million credit facility to provide additional working capital and letters of credit.

The reduction results in an adjusted debt leverage ratio of about 3x.

The transaction was completed on July 26.

The company said the exchange provides it with “the strongest balance sheet and capabilities of any national service provider and the long-term capacity to invest in growth strategies for clients and customers.”

Crossmark is a Plano, Tex.-based sales and marketing services company in the consumer goods industry.

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