v3.26.3
Financing
 3 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
Financing Financing
Outstanding debt consisted of the following:
As of September 30, 2026As of June 30, 2026
Term Loan A$98,750 $— 
Revolving credit loan75,000 165,000 
     Less unamortized debt issuance costs(884)— 
Total debt172,866 165,000 
     Less current maturities5,000 — 
Long-term debt less current maturities$167,866 $165,000 
Long-Term Debt
On July 10, 2026, Malibu Boats, LLC (“Boats LLC”) entered into the Fourth Amended and Restated Credit Agreement (the “Credit Agreement”), which amended and restated the Company’s prior credit agreement. The Credit Agreement provides for a $250.0 million revolving credit facility and a $100.0 million term loan facility (“Term Loan A”), each of which matures on July 10, 2031. On the closing date, Boats LLC borrowed the full $100.0 million available under Term Loan A and used the
net proceeds to repay a portion of the amounts outstanding under the prior revolving credit facility. Following the refinancing, $65.0 million remained outstanding under the new revolving credit facility. Subsequent to the closing date and during the three months ended September 30, 2026, Boats LLC borrowed an additional $10.0 million under the revolving credit facility, resulting in $75.0 million outstanding as of September 30, 2026.
Term Loan A requires quarterly principal payments of $1.25 million beginning September 30, 2026, with the remaining outstanding balance due at maturity. As of September 30, 2026, Boats LLC had $98.8 million outstanding under Term Loan A. Boats LLC also had $1.8 million of outstanding letters of credit, resulting in $173.2 million of availability under the revolving credit facility.
The Credit Agreement permits Boats LLC, subject to specified conditions and lender participation, to request increases to the revolving commitments or obtain incremental term loans in an aggregate principal amount equal to $100.0 million plus additional amounts so long as the consolidated leverage ratio, after giving effect to the additional commitments and related transactions, does not exceed 2.50:1.00.
Boats LLC is the borrower under the Credit Agreement, and its obligations are guaranteed by the LLC and certain present and future subsidiaries of Boats LLC, subject to certain exceptions. The obligations are secured by substantially all of the assets of the applicable loan parties. Malibu Boats, Inc. is not a party to the Credit Agreement.
Borrowings under the 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 Credit Agreement) plus 0.5%, or one-month Term SOFR (as defined in the Credit Agreement) plus 1% (the “Base Rate”) or (ii) SOFR (as defined in the 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 September 30, 2026, the weighted average interest rate on the Company’s revolving credit facility was 5.35%. 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 Credit Agreement contains certain customary representations and warranties and notice requirements upon the occurrence of specified events, including any event of default or pending or threatened litigation. The 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 Credit Agreement contains certain customary restrictive covenants regarding, among other matters, indebtedness, liens, fundamental changes, investments, restricted payments, dispositions of assets, transactions with affiliates, negative pledges, hedging transactions, certain prepayments of indebtedness, accounting changes, governmental regulation, outbound investments and transfers of material intellectual property rights to non-loan parties. For example, the Credit Agreement generally prohibits the LLC, Boats LLC and the other loan parties from paying dividends or making other distributions, including distributions to the Company, subject to specified exceptions. The Credit Agreement permits, among other restricted payments, (i) distributions based on a member’s allocated taxable income, (ii) distributions to fund payments required under the LLC’s tax receivable agreement, (iii) purchases of stock or stock options of the Company from present or former officers, directors or employees of the loan parties, or payments pursuant to stock option or other benefit plans approved by the Company’s board of directors, in an aggregate amount not to exceed $5.0 million in any fiscal year, and (iv) repurchases of the Company’s outstanding stock and LLC Units. In addition, the Credit Agreement permits other dividends and distributions if, after giving effect to such payments on a pro forma basis, the applicable financial covenants are satisfied, the consolidated leverage ratio is not greater than 2.75 to 1.00, liquidity is at least $15.0 million and no specified event of default exists.
Covenant Compliance
As of September 30, 2026, the Company was in compliance with the financial covenants contained in the Credit Agreement.