Incipio gets $225 million commitment for acquisition of Skullcandy

By Wendy Van Sickle

Columbus, Ohio, July 7 – Incipio, LLC received a commitment on June 23 for a $225 million credit facility from Monroe Capital LLC and Wells Fargo Bank NA for its planned acquisition of Skullcandy, Inc., according to filings with the Securities and Exchange Commission.

The committed credit facility includes a revolving credit facility of up to $125 million and a $130 million term loan facility.

In addition to financing a portion of the acquisition, proceeds may be used to refinance Incipio’s existing senior secured debt, to fund certain fees and expenses associated with the credit facility and acquisition and to provide for ongoing general corporate purposes and working capital needs.

Each tranche of the facility would have a five-year term, beginning at closing of the acquisition, no later than Jan. 19, 2017. The term loan would amortize at 5% a year.

Initial interest would be Libor plus a margin of 650 basis points, with a 1% Libor floor. The above-Libor margin would range from 600 bps to 750 bps, depending on the company’s ratio of funded debt to EBITDA.

A merger agreement entered June 23 calls for Incipio to acquire all the outstanding shares of Skullcandy’s capital stock for $5.75 apiece, for a total of about $177 million.

Irvine, Calif.-based Incipio is a global consumer technology solutions platform that operates a portfolio of owned and licensed brands. Based in Park City, Utah, Skullcandy is a creator of audio and gaming products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.