Compass Diversified Announces Amendment to Existing Credit Facility
Compass Diversified (NYSE: CODI) has finalised a new amendment to its credit agreement with senior secured lenders. The deal, backed by Bank of America, N.A. and a group of participating lenders, aims to strengthen the company’s financial position. CEO Elias Sabo confirmed the move aligns with long-term goals of improving cash flow and cutting debt levels.
The Fifth Amendment to the credit agreement restores full access to CODI’s $100 million revolving credit facility. This change also introduces greater covenant flexibility, giving the company more room to manage its financial obligations.
Sabo highlighted that the amendment supports ongoing efforts to boost cash generation and reduce leverage. The company plans to maintain disciplined capital allocation and tight operational control across its subsidiaries. Bank of America, N.A. led the agreement, with additional lenders listed in the transaction documents. The terms reflect CODI’s broader strategy, ensuring stability while pursuing growth opportunities.
The revised credit terms provide CODI with improved liquidity and financial manoeuvrability. With restored access to its revolving facility and relaxed covenants, the company can now focus on executing its operational and financial plans. The amendment marks another step in its push for stronger cash flow and lower debt.
