Fox Factory enters new $650 million revolving credit facility

By Wendy Van Sickle

Columbus, Ohio, April 5 – Fox Factory Holding Corp. entered into a new credit agreement on April 5 to provide for a $650 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

At closing, the company borrowed $423 million under the revolver to repay amounts outstanding under its prior credit agreement and for general corporate purposes. Future revolver advances may be used for working capital, capital expenditures and general corporate purposes.

The revolver matures on April 5, 2027.

Borrowings bear interest at SOFR plus an adjustment of 10 basis points plus a margin ranging from 100 bps to 200 bps, depending on leverage ratio. The commitment fee ranges from 15 bps to 25 bps.

Wells Fargo Bank, NA is the administrative agent, and Wells Fargo Securities, LLC is the bookrunner and is a lead arranger along with PNC Capital Markets LLC and Bank of America, NA.

Upon entering the credit agreement, the company terminated its existing credit agreement dated March 11, 2020 with Bank of America as administrative agent. That agreement was due to mature on March 11, 2025 and comprised a $400 million term loan and a $250 million revolver.

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.

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