Rocky Brands, Inc. Announces Comprehensive Debt Refinancing
April 29 2024 - 4:05PM
Business Wire
New Terms Enhance Company’s Financial Profile
for Continued Execution of Growth Strategies
Rocky Brands, Inc. (NASDAQ: RCKY), a leading designer,
manufacturer and marketer of premium quality footwear and apparel,
today announced the signing of a definitive debt refinance
agreement with Bank of America, as agent. The new agreement, which
amends and restates the Company’s existing revolving credit
facility, will serve to enhance the Company’s cash flow and
liquidity profile while permitting a more simplified capital
structure.
Transaction Summary
- The upsized, amended and extended ABL facility, agented by Bank
of America, is comprised of a $175 million revolving credit
facility and a $50 million term facility, amending and restating
the Company’s existing $175 million revolving credit facility with
Bank of America.
- Proceeds from the refinance were used to retire the Company’s
existing senior secured term loan facility agented by TCW Asset
Management Company, LLC as of April 26, 2024.
- The combined transactions are expected to generate net savings
of approximately $2.9 million for the remainder of 2024, offset by
fees and amortization associated with the retirement of the senior
secured term loan facility of approximately $2.6 million. In 2025,
the combined transactions are expected to generate a combined
annualized savings of approximately $4.4 million.
- The combined transactions extend the Company’s debt maturities
from March 2026 to April 2029.
“Throughout the past year, we have been focused on reducing debt
and right-sizing inventory to strengthen the Company’s balance
sheet,” said Tom Robertson, Chief Operating Officer and Chief
Financial Officer. “We are pleased to further enhance our financial
profile through this expansion of our existing relationship with
Bank of America, which not only simplifies the capital structure,
but also offers increased financial flexibility through more
favorable terms. Looking forward, we believe these actions will
position Rocky Brands to more effectively execute its growth
strategies and increase value for shareholders.”
The Company will provide additional details regarding the terms
and conditions of the amended ABL facility in its Current Report on
Form 8-K to be filed with the Securities and Exchange Commission
(SEC).
Safe Harbor Language
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities and Exchange Act of
1934, as amended, which are intended to be covered by the safe
harbors created thereby. Those statements include, but may not be
limited to, all statements regarding intent, beliefs, expectations,
projections, forecasts, and plans of the Company and its management
and include statements in this press release regarding the
expectations of the debt refinancing to generate interest savings
of approximately $2.9 million for the remainder of 2024, offset by
fees and amortization associated with the retirement of the senior
secured term loan facility of approximately $2.6 million and the
expectations of the debt refinancing to generate a combined
annualized savings of approximately $4.4 million in 2025. These
forward-looking statements involve numerous risks and
uncertainties, including, without limitation, risks related to
interest rate changes, the amount of the Company’s indebtedness,
and the various risks inherent in the Company’s business as set
forth in periodic reports filed with the Securities and Exchange
Commission, including the Company’s annual report on Form 10-K for
the year ended December 31, 2023 (filed March 15, 2024). One or
more of these factors have affected historical results, and could
in the future affect the Company’s businesses and financial results
in future periods and could cause actual results to differ
materially from plans and projections. Therefore there can be no
assurance that the forward-looking statements included in this
press release will prove to be accurate. In light of the
significant uncertainties inherent in the forward-looking
statements included herein, the inclusion of such information
should not be regarded as a representation or warranty by the
Company or any other person that the objectives and plans of the
Company will be achieved. All forward-looking statements made in
this press release are based on information presently available to
the management of the Company. The Company assumes no obligation to
update any forward-looking statements.
About Rocky Brands, Inc.
Rocky Brands, Inc. is a leading designer, manufacturer and
marketer of premium quality footwear and apparel marketed under a
portfolio of well recognized brand names. Brands in the portfolio
include Rocky®, Georgia Boot®, Durango®, Lehigh®, The Original Muck
Boot Company®, XTRATUF®, and Ranger®. More information can be found
at RockyBrands.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240429320204/en/
Company Contact: Tom Robertson Chief Operating Officer,
Chief Financial Officer and Treasurer (740) 753-9100 Investor
Relations: Brendon Frey ICR, Inc. (203) 682-8200
Rocky Brands (NASDAQ:RCKY)
Historical Stock Chart
From Sep 2024 to Oct 2024
Rocky Brands (NASDAQ:RCKY)
Historical Stock Chart
From Oct 2023 to Oct 2024