Johnson Outdoors Inc., a Racine-based global outdoor recreation equipment company, has announced a new streamlined structure of the company’s debt.
The new loan agreement replaces the company’s current revolving credit facility and is expected to reduce annual borrowing costs. The new pact provides financing up to $90 million which matures in five years, with an accordion provision for an incremental $25 million. The facility is reduced to $60 million from late June to late October, consistent with the company’s reduced working capital needs during that period.
PNC Capital Markets arranged the transaction, and PNC Bank is the lead agent of three participating lenders in this revolving credit facility.
The new revolving credit facility bears interest on a floating rate basis.
The Company’s existing term debt facility, arranged by Ridgestone Bank of Brookfield, remains in effect.
“Our new credit agreement recognizes the success of our efforts to strengthen operations and deliver consistently improved financial performance, and also reaffirms the confidence of our lenders in our ability to achieve sustained, profitable growth long-term,” said David Johnson, vice president and chief financial officer.