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Subsequent Events
9 Months Ended
Mar. 31, 2015
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events
Tender Offer
On April 15, 2015, upon completion of the Offer, the Company purchased 3,333 shares of Class A Common Stock, including Class A Common Stock issued upon the exchange of LLC Units, at a purchase price of $21.00 per share for an aggregate purchase price of approximately $70,000, excluding related fees and expenses of approximately $728 related to the Offer. Upon the acceptance by the Company of such shares, 2,603 shares of the Company’s Class A Common Stock were deemed to have been issued on April 9, 2015 in exchange for 2,603 LLC Units in connection with the Offer. Immediately following settlement of the Offer, the Company owned 14,879 LLC Units representing 77.2% of the economic interest in the LLC while non-controlling LLC Unit holders owned 4,399 LLC Units representing a 22.8% interest in the LLC. The Company funded the purchase price, including the related fees and expenses, with borrowings under its Amended and Restated Credit Agreement which was entered into on April 2, 2015.
In connection with completion of the Offer, the Company estimates it will record deferred tax assets of approximately $26,798 associated with basis differences in assets upon acquiring the additional interest in Malibu Boats Holdings, LLC and in anticipation of making a Section 754 election. The Company also estimates it will record approximately $24,212 in tax receivable agreement liabilities representing 85% of the tax savings that the Company will receive in connection with the Section 754 election. These amounts are preliminary and subject to adjustment.
Amended and Restated Credit Agreement
On April 2, 2015, Malibu Boats, LLC, an indirect subsidiary of the Company and the "Borrower", entered into an Amended and Restated Credit Agreement to its existing credit agreement dated July 16, 2013, by and among the Borrower, its parent, Malibu Boats Holdings, LLC and certain subsidiaries of the Borrower parties thereto, as guarantors, the lenders parties thereto, and SunTrust Bank, as administrative agent, swingline lender and issuing bank. The Amended and Restated Credit Agreement provides for an $80,000 term loan facility, all of which was made available to and drawn by the Borrower on April 2, 2015, and a revolving credit facility of up to $25,000, each, with a maturity date of April 2, 2020. The Borrower has the option to request lenders to increase the amount available under the revolving credit facility by, or obtain incremental term loans of, up to $50,000, subject to the terms of the Amended and Restated Credit Agreement and only if existing or new lenders choose to provide additional term or revolving commitments.
Borrowings under the Amended and Restated Credit Agreement bear interest at a rate equal to either, at the Borrower's option, (i) the highest of the prime rate, the Federal Funds Rate plus 0.5%, or one-month LIBOR plus 1% (the “Base Rate”) or (ii) LIBOR, in each case plus an applicable margin ranging from 1.00% to 1.75% with respect to Base Rate borrowings and 2.00% to 2.75% with respect to LIBOR borrowings. The applicable margin will be based upon the consolidated leverage ratio of the LLC and its subsidiaries calculated on a consolidated basis. The Borrower will also be required to pay a commitment fee for the unused portion of the revolving credit facility, which will range from 0.25% to 0.40% per annum, depending on the LLC’s and its subsidiaries’ consolidated leverage ratio.
The Amended and Restated Credit Agreement permits prepayment of the new term loan facility without any penalties. The term loan facility under the Amended and Restated Credit Agreement is subject to quarterly installments of $1,500 per quarter until March 31, 2016, then $2,000 per quarter until March 31, 2019, and $2,500 per quarter thereafter. The Amended and Restated Credit Agreement is also subject to prepayments from the net cash proceeds received by the Borrower or any guarantors from certain asset sales and recovery events, subject to certain reinvestment rights, and from excess cash flow, subject to the terms and conditions of the Amended and Restated Credit Agreement.
Proceeds from the new term loan facility were used to (i) repurchase $70,000 of the Company's Class A Common Stock in the Offer which closed on April 15, 2015, (ii) refinance amounts outstanding under the Existing Credit Agreement of approximately $10,000, and (iii) pay fees and expenses of approximately $1,100 related to entering into the Amended and Restated Credit Agreement.