Boardriders Credit Agreement: A Closer Look

Boardriders Inc. announced in June 2021, that it had entered into a new $150 million credit agreement with a group led by Bank of America. Boardriders, one of the world`s leading action sports and lifestyle companies, owns a number of popular brands like Quiksilver, Roxy, and DC Shoes. The new credit facility replaces Boardriders` previous $100 million revolving credit line.

But what does this credit agreement mean for Boardriders and its stakeholders?

First of all, the credit agreement provides Boardriders with increased financial flexibility so that it can continue to invest in its brands and grow its business. The agreement includes an accordion feature that allows Boardriders to increase the size of the credit facility up to $250 million, subject to certain conditions.

Moreover, the credit agreement aligns with Boardriders` commitment to sustainability by including an ESG (environmental, social, and governance) component. Boardriders has committed to maintaining and improving certain sustainability performance metrics, such as reducing its carbon footprint and increasing the use of sustainable materials in its products. The credit agreement incentivizes Boardriders to meet these performance metrics by providing a pricing discount based on its ESG performance.

Another key aspect of the credit agreement is that it includes a LIBOR (London Interbank Offered Rate) replacement provision. LIBOR, which is currently used as a reference rate for many financial contracts, is being phased out by the end of 2021. The credit agreement includes a fallback provision in case LIBOR becomes unavailable or unreliable.

Overall, the Boardriders credit agreement demonstrates the company`s commitment to responsible growth and sustainability. By securing additional financial resources, Boardriders can continue to invest in its brands and create value for its stakeholders. The inclusion of an ESG component in the credit agreement also reflects the increasing importance of sustainability in the business world. As Boardriders continues to navigate the challenges and opportunities of the global market, this credit agreement provides a solid foundation for future growth.