v3.26.1
Financing
 12 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Financing Financing
Outstanding debt consisted of the following:
As of June 30,
20262025
Term loan$— $— 
Revolving credit loan165,000 18,000 
Total debt165,000 18,000 
     Less current maturities— — 
Long-term debt less current maturities$165,000 $18,000 
Long-Term Debt
On July 8, 2022, Boats LLC entered into a Third Amended and Restated Credit Agreement (the “Third A&R Credit Agreement”) that amended and restated its second amended and restated credit agreement dated as of June 28, 2017. The Third A&R Credit Agreement increased the borrowing capacity of the revolving credit facility from $170,000 to $350,000. Boats LLC has the option to request that lenders increase the amount available under the revolving credit facility by, or obtain incremental term loans of, up to $200,000, subject to the terms of the Third A&R Credit Agreement and only if existing or new lenders choose to provide additional term or revolving commitments. As of June 30, 2026, the Company had $165,000 outstanding under its revolving credit facility and $1,847 in outstanding letters of credit with $183,153 available for borrowing. On March 2, 2026, the Company borrowed $140,000 from the revolving credit facility to partially fund the purchase price of the Saxdor acquisition. The revolving credit facility had a maturity date of July 8, 2027. Subsequent to June 30, 2026, the Company entered into a Fourth Amended and Restated Credit Agreement which extended the maturity of the revolving credit facility. For additional information, see Note 21.
The obligations of Boats LLC under the Third A&R Credit Agreement were guaranteed by the LLC, and, subject to certain
exceptions, the present and future domestic subsidiaries of Boats LLC, and all such obligations are secured by substantially all of the assets of the LLC, Boats LLC and such subsidiary guarantors. Malibu Boats, Inc. was not a party to the Third A&R Credit Agreement.
Borrowings under the Third A&R Credit Agreement bear interest at a rate equal to either, at the Company's option, (i) the highest of the prime rate, the Federal Funds Rate (as defined in the Third A&R Credit Agreement) plus 0.5%, or one-month Term SOFR (as defined in the Third A&R Credit Agreement) plus 1% (the “Base Rate”) or (ii) SOFR (as defined in the Third A&R Credit Agreement), in each case plus an applicable margin ranging from 1.25% to 2.00% with respect to SOFR borrowings and 0.25% to 1.00% with respect to Base Rate borrowings. The applicable margin is based upon the consolidated leverage ratio of the LLC and its subsidiaries. As of June 30, 2026, the weighted average interest rate on the Company’s revolving credit facility was 4.92%. Subsequent to June 30, 2026, the Company entered into a fourth amended and restated credit agreement as of July 10, 2026. For additional information, see Note 21. The Company is required to pay a commitment fee for any unused portion of the revolving credit facility which ranges from 0.15% to 0.30% per annum, depending on the LLC’s and its subsidiaries’ consolidated leverage ratio.
The Third A&R Credit Agreement contains certain customary representations and warranties, and notice requirements for the occurrence of specific events such as the occurrence of any event of default or the filing, or commencement of, or any material development in any litigation. The Third A&R Credit Agreement also requires compliance with certain customary financial covenants consisting of a minimum ratio of EBITDA to interest expense and a maximum ratio of total debt to EBITDA. The Third A&R Credit Agreement contains certain customary restrictive covenants, among others, regarding indebtedness, liens, fundamental changes, investments, restricted payments, disposition of assets, transactions with affiliates, negative pledges, hedging transactions, certain prepayments of indebtedness, accounting changes and governmental regulation, in each case, subject to customary exceptions. For example, the Third A&R Credit Agreement generally prohibits the LLC, Boats LLC and the subsidiary guarantors from paying dividends or making distributions, including to the Company. The credit facility permits, however, (i) distributions based on a member’s allocated taxable income, (ii) distributions to fund payments that are required under the LLC’s tax receivable agreement, (iii) purchase of stock or stock options of the LLC from present or former officers, directors or employees of loan parties or payments pursuant to stock option and other benefit plans up to $5,000 in any fiscal year, and (iv) repurchases of the Company's outstanding stock and LLC Units. In addition, the LLC may make unlimited dividends and distributions if its consolidated leverage ratio is 2.75 or less and certain other conditions are met, subject to compliance with certain financial covenants.
The Third A&R Credit Agreement also contains customary events of default. If an event of default has occurred and continues beyond any applicable cure period, the administrative agent may (i) accelerate all outstanding obligations under the Third A&R Credit Agreement or (ii) terminate the commitments, amongst other remedies. Additionally, the lenders are not obligated to fund any new borrowing under the Third A&R Credit Agreement while an event of default is continuing.
Covenant Compliance
As of June 30, 2026 and 2025, the Company was in compliance with the financial covenants contained in the Third A&R Credit Agreement.