Fox Factory puts in place $175 million bank facility with restatement

New York, May 16 – Fox Factory Holding Corp. said it completed a second amendment and restatement of its credit facility giving it a $100 million five-year senior secured revolving credit facility and a $75 million five-year senior secured term loan.

There is a $100 million accordion feature and the covenants are less restrictive, according to the company.

“We are very pleased to increase our financial flexibility through the enhancements made to our credit facility,” said Larry L. Enterline, Fox Factory’s chief executive officer, in a news release.

“We believe this facility, in conjunction with our cash flows from operations, will adequately meet our capital requirements for future growth through the continued execution of our strategic initiatives and potential acquisitions. The facility also gives us the opportunity to return value to stockholders through additional share repurchases over the next several years. We appreciate the strong level of confidence from our lenders as we continue to execute on our long-term growth strategy.”

The amendment was completed on May 11.

Fox Factory increased its term loan from a previous size of $46 million and its revolver from $60 million.

The new maturity date is May 11, 2021.

SunTrust Robinson Humphrey, Inc. was lead arranger and bookrunner, SunTrust Bank was administrative agent and U.S. Bank NA and Bank of America, NA were syndication agents.

Interest is initially Libor plus 175 basis points with a 20 bps commitment fee for the revolver.

Depending on the company’s consolidated net leverage ratio, interest can vary from Libor plus 150 bps to Libor plus 250 bps and the commitment fee from 20 bps to 30 bps.

Fox Factory is a Scotts Valley, Calif. 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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