Weber-Stephen gets $350 million credit facilities via Ribeye Capital

By Sara Rosenberg

New York, Dec. 12 – Weber-Stephen Products LLC closed on Sunday on $350 million of unsecured credit facilities due Dec. 31, 2023 provided by Ribeye Capital LLC, according to an 8-K filed with the Securities and Exchange Commission on Monday.

The facilities consist of a $120 million delayed-draw term loan and a $230 million revolver.

Pricing on the credit facilities is a fixed annual rate of 15%, payable in cash or “in kind” by adding such amount of accrued interest to the outstanding principal balance of the loans, in either case on a quarterly basis.

An upfront fee of 2% of the principal amount of the loans will also be payable in cash or “in kind” upon funding of the term loan.

A commitment fee of 50 basis points per annum or the average daily unused commitments under the facilities will also be payable in cash or “in kind” quarterly in arrears on the last business day of each calendar quarter commencing on the last business day of December 2022 and on Dec. 31, 2023.

Proceeds will be used for working capital, capital expenditures and other general corporate purposes, and to pay related fees and expenses.

In addition, the company amended its existing loan agreement with BDT Capital to extend the maturity date to Jan. 29, 2028.

The new credit facilities are not contingent on the buyout of Weber-Stephen’s parent company, Weber Inc., by BDT Capital Partners LLC.

On Monday, it was announced that BDT is buying all of the outstanding class A shares that it does not already own for $8.05 per share of, which implies a total enterprise value of $3.7 billion for Weber.

Closing is expected in the first half of 2023, subject to customary conditions, including HSR clearance.

Weber is a Palatine, Ill.-based manufacturer of charcoal, gas, pellet and electric grills, smokers, and accessories for outdoor cooking.

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