OneWater Marine amends, restates facilities for $510 million

By Mary-Katherine Stinson

Lexington, Ky., Aug. 9 – OneWater Marine Inc. announced that subsidiary One Water Assets & Operations, LLC entered an amended and restated credit agreement on Aug. 9 providing two tranches of funding for a total of $510 million, according to an 8-K filing with the Securities and Exchange Commission.

The facility consists of a single tranche of revolving commitments equal to $65 million including up to $5 million in swingline loans and up to $5 million in letters of credit and a single tranche of initial term loans in a total principal amount equal to $445 million.

Subject to certain conditions, the available amount under the term facility and the revolving facility may be increased by a total of $125 million with up to $50 million allocable to the revolving facility.

Both facilities mature on Aug. 9, 2027 with the term facility repayable in installments beginning on Dec. 31, 2022.

Borrowings bear interest at SOFR plus 175 to 275 basis points. Interest on swingline loans will bear interest at the base rate plus 175 to 275 bps.

The commitment fee will be between 15 bps and 35 bps.

The initial margin is 225 bps with the commitment fee at 25 bps.

The margins are based on leverage.

There were no borrowings under the facility at closing.

Truist Bank is the administrative agent, collateral agent, issuing bank and swingline lender.

Truist Securities Inc., Keybank NA and Synovus Bank are the joint lead arrangers and bookrunners.

Hancock Whitney Bank, Pinnacle Bank and Wells Fargo Bank, NA are the documentation agents.

The proceeds of the term facility, together with cash, have been used to finance capital expenditures, acquisitions, working capital needs and for other general corporate purposes of the borrower and its subsidiaries.

The facility amends and restates the credit agreement, dated as of July 22, 2020 and as amended on Feb. 2, 2021 and on Nov. 20, 2021.

In addition, on the closing date, OneWater Marine completed its previously announced acquisition of Ocean Bio-Chem, Inc. in which Ocean Bio-Chem’s dissenting shares were converted into the right to receive approximately $13.08 in cash consideration without interest for a total purchase price of approximately $124.4 million.

Also, on closing, OneWater Marine Assets & Operations completed its previously announced acquisition of Star Brite Europe, Inc. pursuant to an equity purchase agreement with Ocean Bio-Chem chairman, president and chief executive officer Peter G. Dornau and spouse, for a total purchase price of $7 million subject to certain adjustments and completed its acquisition of certain real property from PEJE, Inc.

The Ocean Bio-Chem acquisition and Star Brite Europe acquisitions were funded by cash and proceeds from the amended credit facility.

OneWater is a recreational boat retailer based in Buford, Ga.

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