VONORE, Tennessee, June 28, 2021 (GLOBE NEWSWIRE) – MasterCraft Boat Holdings, Inc. (MCFT) (the “Company”) announced today that its board of directors has approved a new share buyback program under which the Company will buy back may have up to $ 50 million of its common stock outstanding during the three-year period ended June 24, 2024. MasterCraft also announced today that it has a new $ 160 million credit facility consisting of a $ 60 million term loan And a $ 100 revolver credit facility of $ 33.7 million, of which $ 33.7 million is being drawn on the turret at the time of this filing. This new credit facility, which replaced the Company’s previously existing senior secured credit facility, is expected to mature on June 28, 2026. This credit facility will provide MasterCraft with additional liquidity and financial flexibility to further implement its consumer-driven growth strategy. JPMorgan Chase Bank was the lead administrator in the refinancing process.
“MasterCraft takes a disciplined and prudent approach to capital allocation, and the approval of a share buyback program by the Board of Directors reflects the confidence we have in our company, our growth strategy, our extensive brand portfolio, and our ability to execute on our beliefs “Said Fred Brightbill, Chief Executive Officer and Chairman. “The new credit line we have set up gives us more 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 and enable the company to better serve its dealers and consumers. We are confident that MasterCraft is well positioned to build on its momentum and continue to generate profitable growth and shareholder value creation. “
The timing and amount of share buybacks will be determined by MasterCraft’s management in its sole discretion based on ongoing assessments of the company’s capital requirements, the market price of MasterCraft’s common shares and general market conditions. Share buybacks under the program can be done through a variety of methods, including open market purchases, accelerated share buybacks, offers to buy, privately negotiated transactions, or otherwise. The program does not require MasterCraft to purchase any amount of its common stock, and the share buyback program may be suspended or terminated at any time at the Company’s discretion.
The new loan 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 that the company filed with the Securities and Exchange Commission on June 28, 2021.
About MasterCraft Boat Holdings, Inc.
MasterCraft Boat Holdings, Inc. (MCFT), headquartered in Vonore, Tennessee, is a leading innovator, designer, manufacturer and marketer of recreational motor boats through its four brands MasterCraft, NauticStar, Crest and Aviara. Through these four brands, MasterCraft Boat Holdings has leading market shares in three of the fastest growing segments of the powerboat industry – high performance recreational craft, saltwater outboard fishing and pontoon boats – while entering the large, growing luxury day boat segment. For more information about MasterCraft Boat Holdings and its four brands, please visit: investor.mastercraft.com, www.MasterCraft.com, www.NauticStarBoats.com, www.CrestPontoonBoats.com and www.AviaraBoats.com.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995). Forward-looking statements are often made up of words and expressions such as “believes,” “expects,” “expects,” “intends,” “estimates,” “may,” “will,” “should”, “further” and. recognize similar expressions, comparable terminology, or the negative thereof and include in this press release statements about the future prospects of our business and our ability to add value and grow.
Forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including, but not limited to: the potential impact of the coronavirus (COVID-19) pandemic of the company, supply chain disruptions, general economic conditions, demand for our products, changes in consumer preferences, competition within our industry, our reliance on our network of independent distributors, our ability to manage our production volumes and our large fixed cost base, changes in the U.S. Federal Income Tax Act, the effects and interpretation of which are altogether uncertain, and the successful launch of our new products. These and other important factors identified under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020, filed with the Securities and Exchange Commission (the “SEC”) on September 11, 2020 , discussed, could cause actual results to differ materially from those in the forward-looking statements. Discussion of these risks is expressly incorporated by reference into this press release.
Such forward-looking statements represent management’s estimates as of the date of this press release. These forward-looking statements should not be taken as a representation of our views at any time after the date of this press release. We assume no obligation (and expressly disclaim any obligation) to update or add to any forward-looking statements that become untrue or cause our views to change, whether as a result of new information, future events, changes in assumptions or for any other reason . The comparison of results for current and prior periods is not intended to express future trends or any indication of future performance, unless expressed as such and should be viewed as historical data only.
Investor contact:
MasterCraft Boat Holdings, Inc.
George Steinbarger
Chief Revenue Officer
E-mail: [email protected]
