Compass Diversified entered into a material amendment to its credit agreement concurrently with its second quarter 2026 reporting. The company reduced its revolving credit capacity and established a structured step-down for leverage ratios through late 2027 to align with its capital allocation strategy.
Key Highlights
- Aggregate revolving commitments were decreased to $54 million from $100 million while extending the maturity date to January 12, 2028.
- New leverage covenants require a Consolidated Total Leverage Ratio of 5.75x by September 2026, stepping down to 4.50x by late 2027.
- A $4 million milestone fee was established if existing term loans are not repaid in full on or prior to December 31, 2026.