Last week, Tuesday (May 18), investor Wingspire Capital gave Fox Racing Inc. a senior secured credit facility of USD 95 million (EUR 77.71 million), according to its own information ) granted. The facility consists of a revolving line of credit of $ 35 million and a term loan of $ 60 million.
A credit facility is understood to mean the entirety of all credit options that are available to a customer to cover a credit requirement with one or more banks. A revolving loan is a term used to describe all loans that the borrower can use repeatedly up to the maximum amount of a credit line within the loan term in varying amounts.
Fox Racing, part of the portfolio of private investment firm Altamont Capital Partners, will use the loan proceeds to both refinance its previous senior line of credit and to support its immediate and long-term growth initiatives.
Since people spend more and more time outdoors in the Corona period and thus also increase their spending on sports and fitness activities, the Californian protective equipment and clothing supplier has experienced a product demand that is tough. In order to be able to cope with further growth and to ride the wave, further capital is necessary.
Incidentally, Fox Racing has nothing to do with the listed US chassis and suspension specialist Fox Factory Holding Corp. to do. While Fox Racing was founded by Geoff Fox, his brother Bob Fox was behind the chassis specialist Fox Factory. It is also well positioned in the bicycle business – with the brands Easton Cycling, Fox, Marzocchi and Race Face.
“Wingspire is proud to have provided this financing solution for Fox Racing and Altamont Capital Partners,” said Wingspire CEO David Wisen. After all, it was not that easy to successfully complete this complicated financing within a demanding timeframe.
According to Pete Meyerdirk of Altamont Capital Partners, after a competitive process, Wingspire was selected for the best financing solution for Fox Racing’s needs “because they developed a detailed strategy to achieve the financial goals we were trying to achieve. Their approach, combined with their ability to provide a one-stop financing solution, gave us confidence that they would deliver the credit facility we wanted in a reduced timeframe. “
Text: Jo Beckendorff, Foto: Fox Racing
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