Acushnet gets amended $350 million term loan, $400 million revolver

By Sarah Lizee

Olympia, Wash., Dec. 30 – Acushnet Holdings Corp. subsidiaries Acushnet Co., Acushnet Canada Inc. and Acushnet Europe Ltd. entered into an amended and restated credit agreement on Dec. 23 with Wells Fargo Bank, NA as administrative agent, providing for a $350 million term loan facility due Dec. 23, 2024 and a $400 million revolver due Dec. 23, 2024, according to an 8-K filing with the Securities and Exchange Commission.

The revolver includes a $50 million letter-of-credit sublimit, a $50 million swingline sublimit, a C$50 million sublimit available for revolving credit borrowings by Acushnet Canada, a £45 million sublimit available for revolving credit borrowings by Acushnet Europe and a $200 million sublimit for borrowings in Canadian dollars, euros, pounds sterling, Japanese yen and other currencies agreed to by the lenders under the revolver.

Acushnet Co. has the right to request additional term loans and/or increases to the revolver in an aggregate principal amount not to exceed $225 million plus an unlimited amount so long as the net average secured leverage ratio does not exceed 2.25x on a pro forma basis.

The restated credit agreement reduced the applicable margin by 25 basis points to Libor plus 100 bps to 175 bps, based on the net average total leverage ratio.

The restated credit agreement also reduced the commitment fee rate to 15 bps to 30 bps, based on the net average total leverage ratio.

Interest is initially Libor plus 125 bps and the commitment fee is initially 20 bps.

Acushnet Co. is required to make principal payments on the loans under the term loan facility in quarterly installments in an aggregate annual amount equal to 5%.

The maximum net average total leverage ratio was increased to 3.5x, which is subject to increase to 3.75x in connection with certain acquisitions, and the minimum consolidated interest coverage ratio was decreased to 3x. In addition, the restated credit facility modified certain covenant baskets.

Wells Fargo Securities, LLC, JPMorgan Chase Bank, NA and PNC Capital Markets LLC are joint lead arrangers and joint bookrunners. JPMorgan and PNC are the syndication agents. Bank of Montreal, Capital One, NA, Citizens Bank, NA, MUFG Bank Ltd., TD Bank, NA and Truist Bank are documentation agents.

The Fairhaven, Mass.-based company makes golf equipment and clothing.

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