Fox Factory enters $650 million amended two-tranche credit facility

By Wendy Van Sickle

Columbus, Ohio, March 16 – Fox Factory Holding Corp. amended and restated its credit agreement on March 11 to provide for a $250 million revolving credit facility and a $400 million term loan, according to an 8-K filing with the Securities and Exchange Commission.

At closing, the company borrowed the full term loan amount, which was used in part to finance its acquisition of SCA Performance Holdings, Inc. from Southern Rocky Holdings, LLC.

The company also borrowed $42 million under the revolver for general corporate purposes. Future revolver advances may be used for working capital, capital expenditures and general corporate purposes.

Bank of America, NA is the administrative gent; U.S. Bank NA is the documentation agent; and BofA Securities Inc. is the lead arranger and bookrunner.

The term loan must be repaid in quarterly installments commencing on the ending date of the second fiscal quarter of 2020 and continuing on the ending date of each fiscal quarter thereafter until its maturity on March 11, 2025, which is also the maturity date for the revolver.

The revolver bears interest at Libor plus a margin ranging from 100 basis points to 175 bps with an initial margin of 150 bps, and its commitment fee ranges from 20 bps to 35 bps, depending on consolidated net leverage ratio.

The company must maintain a maximum leverage ratio of 3.75 times, with a step-up to 4 times following certain permitted acquisitions, and a minimum fixed charge coverage ratio of 1.5 times.

Fox Factory is a Scotts Valley, Calif.-based manufacturer of high-performance ride dynamics products primarily for bicycles, side-by-side vehicles, on-road and off-road vehicles and trucks, all-terrain vehicles, snowmobiles, specialty vehicles and applications, and motorcycles. SCA is a specialty vehicle manufacturer for light duty trucks and SUVs with headquarters in Trussville, Ala.

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