Malibu Boats draws $105 million term loan for Cobalt acquisition

By Wendy Van Sickle

Columbus, Ohio, July 7 – Malibu Boats, Inc. wholly owned indirect subsidiary Malibu Boats, LLC drew the $105 million delayed-draw term loan provided for by a June 28 credit agreement on Thursday in connection with its acquisition of Cobalt Boats, LLC, according to an 8-K filing with the Securities and Exchange Commission.

The delayed-draw term loan requires quarterly installments of about $1.3 million per quarter until March 31, 2019, then about $2 million per quarter until June 30, 2021 and about $2.6 million per quarter through March 31, 2022. The balance of the term loan is due at maturity on July 1, 2022.

The credit agreement also included $55 million of term loans funded at closing and a $35 million revolving credit facility. Each tranche matures on July 1, 2022.

Interest on the loans is initially Libor plus 250 basis points, with the spread generally ranging from 175 bps to 300 bps based on leverage.

SunTrust Bank is administrative agent, swingline lender and issuing bank.

Malibu Boats bought Neodesha, Kan.-based Cobalt, a manufacturer and distributor of sterndrive and outboard boats, for $130 million.

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

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