West Marine acquisition financing to include $250 million bank loans

By Angela McDaniels

Tacoma, Wash., July 24 – The acquisition of West Marine, Inc. will be funded with $250 million of debt financing, according to a schedule 14A filing with the Securities and Exchange Commission.

The debt financing will consist of a $225 million senior secured first-lien credit facility, of which $200 million is an asset-based revolving line of credit and $25 million is a first-in last-out asset-based term loan, and a $25 million second-lien asset-based term loan.

Bank of America, NA provided a commitment for the first-lien credit facility, and Pathlight Capital LLC has given a commitment for the second-lien loan. Bank of America Merrill Lynch will act as the lead arranger for the first-lien credit facility.

West Marine agreed to be acquired by Rising Tide Parent Inc., an affiliate of New York-based private equity fund Monomoy Capital Partners. Rising Tide will also use up to $130 million of cash equity investments by Monomoy to fund the acquisition.

West Marine stockholders will receive $12.97 per share, which is a 34.4% premium to the company’s closing share price on June 29.

The acquisition is expected to close in the third quarter, subject to West Marine stockholder approval and other customary closing conditions.

Watsonville, Calif.-based West Marine is a specialty retailer of boating gear, apparel, footwear and other related products.

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