MasterCraft Boat Holdings, Inc. announces new $50 Million Share Repurchase Program
by MasterCraft Boat Holdings 29 Jun 2021 15:32 BST
MasterCraft Boat Holdings, Inc © MasterCraft Boat Company
MasterCraft Boat Holdings, Inc. (NASDAQ: MCFT) (the "Company") announced today that its Board of Directors has authorized a new share repurchase program under which the Company may repurchase up to $50 million of its outstanding shares of common stock during the three-year period ending June 24, 2024.
MasterCraft also announced today that it has successfully closed on a new $160 million credit facility, consisting of a $60 million term loan and a $100 million revolving credit facility, of which $33.7 million is drawn on the revolver as of the date of this filing. This new credit facility, which replaced the Company's previously existing senior secured credit facility, is scheduled to mature on June 28, 2026. This credit facility will provide MasterCraft with additional liquidity and financial flexibility to continue to execute on its consumer-centric growth strategy. JPMorgan Chase Bank was lead Administrative Agent in the refinancing process.
"MasterCraft maintains a disciplined and thoughtful approach to capital allocation, and the Board's authorization of a share repurchase program reflects the confidence we have in our company, our growth strategy, our comprehensive portfolio of brands, and our ability to execute on what we believe to be a tremendous opportunity before us," said Fred Brightbill, Chief Executive Officer and Chairman. "The new credit facility we have put in place provides us with greater flexibility to pursue our strategic goals, improve our capital structure and increase liquidity. We will continue to make decisions that support our long-term goals, enabling the Company to better serve its dealers and consumers. We are confident that MasterCraft is well positioned to build on its momentum and deliver continued profitable growth and shareholder value creation."
The timing and amount of any share repurchases will be determined by MasterCraft's management at its discretion based on ongoing assessments of the capital needs of the business, the market price of MasterCraft's common stock and general market conditions. Share repurchases under the program may be made through a variety of methods, which may include open market purchases, accelerated share repurchases, tender offers, privately negotiated transactions or otherwise. The program does not obligate MasterCraft to acquire any particular amount of its common stock, and the share repurchase program may be suspended or discontinued at any time at the Company's discretion.
The new credit agreement was led by JPMorgan Chase Bank as Administrative Agent and Sole Lead Arranger and Fifth Third Bank and BMO Harris Bank as Co-Syndication Agents. Additional details can be found on a Form 8-K filed by the Company with the Securities and Exchange Commission on June 28, 2021.