Rocky Brands completes loan financing for Honeywell acquisition

Chicago, March 16 – Rocky Brands, Inc. closed two loans to fund its purchase of the footwear business of Honeywell International, Inc. on Monday, according to an 8-K filing with the Securities and Exchange Commission.

The company paid a $230 million cash purchase price for the acquisition, using acquisition financing and cash on hand.

Rocky Brands entered into an ABL loan and security agreement with Bank of America, NA as agent, lead arranger and bookrunner on Monday and a loan and security agreement with TCW Asset Management Co. LLC for a term loan.

The Bank of America loan consists of a $150 million senior secured asset-based credit facility with a $50 million accordion feature. The TCW loan is a $130 million senior secured term loan.

The Bank of America loan bears interest between Libor plus 125 basis points and Libor plus 175 bps based on the average daily availability of the aggregate amount of commitments.

For the TCW loan, interest will be either Libor plus 650 basis points or Libor plus 700 bps, based on whether leverage is above or below 3.25x. The loan has a 1% Libor floor.

The company has borrowed $210 million under both agreements as of March 15.

Rocky Brands is a Nelsonville, Ohio-based designer, manufacturer and marketer of footwear.

© 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.