Case Summary: Dakine

Dakine

$40 million senior secured credit facility

Overview

Founded in 1979, Dakine is an established consumer action sports brand. The company's product offering includes backpacks, luggage, gloves and other technical accessories used by enthusiasts across multiple action sports segments such as ski/snowboarding, surfing, biking and skating. Dakine merchandise is distributed globally throughout North America, Europe and Australia/Asia to action sports specialty retailers, outdoor retailers and ecommerce distributors.

Challenge

Dakine was an independent company until it was purchased by Billabong in 2008. Under Billabong’s ownership the brand was under managed, and as part of Billabong’s need to recapitalize its core business, Dakine was sold to Altamont Capital Partners in July 2013. Altamont was seeking a financing partner who could navigate the complexities of a corporate carve out and understand how the business would manage through its transition services agreement while strengthening key business functions

Solution

Crystal underwrote a $40.0 million unitranche facility comprised of a $15.0 million revolver and a $25.0 million term loan. Proceeds were used to provide a return of capital to Altamont, who had funded the full initial purchase price, and for general working capital purposes. Dakine is now positioned with a comprehensive capital structure which will facilitate the continued development of its standalone operations as well as position the company future growth.