Cadre Holdings Bolsters Financial Flexibility with $590M Credit Facility Expansion

Cadre Holdings, Inc. (NYSE: CDRE), a global leader in safety equipment manufacturing and distribution, has announced a significant expansion to its credit facilities, securing a $590 million financing package with a five-year maturity. This strategic move enhances the company's financial flexibility, enabling it to pursue long-term acquisition strategies and growth objectives. The new credit facilities consist of a $175 million undrawn revolving credit facility, a $225 million term loan, and two delayed draw term loans totaling $190 million.

The delayed draw term loan structure, with $115 million available for six months and $75 million for eighteen months, allows Cadre to maintain financial discipline while pursuing strategic acquisitions. This flexibility enables the company to deploy capital when attractive opportunities arise, rather than being forced to act hastily. Additionally, the extended availability of the second delayed draw facility reduces pressure to deploy capital immediately, allowing for more selective deal execution.



The involvement of eight major financial institutions, including PNC Bank, Bank of America, Regions Bank, US Bank, and Bank of Montreal, as Joint Lead Arrangers, signals strong market confidence in Cadre's growth strategy. This diverse group of lenders has chosen to support Cadre's expansion, demonstrating their faith in the company's financial health and growth prospects.

The expanded credit facility allows Cadre to better navigate potential economic downturns and maintain its competitive position. With $458.0 million of capital, Cadre can pursue its growth objectives, including acquisitions and organic growth opportunities. The five-year maturity timeline and the involvement of eight major financial institutions indicate favorable terms and strong market confidence.

The availability of delayed draw term loans will significantly enhance Cadre's financial flexibility and M&A capabilities. The $115 million 6-month facility signals imminent M&A activity, while the $75 million 18-month facility ensures longer-term strategic optionality. This structure allows Cadre to act quickly with committed capital, often leading to better acquisition terms and preemptive opportunities. The extended availability of the second delayed draw facility also reduces pressure to deploy capital hastily, enabling more selective deal execution.

In conclusion, Cadre Holdings' expansion to credit facilities provides more scale and financial flexibility, enabling the company to continue proactively seeking meaningful organic and inorganic growth opportunities. The strategic breakdown of the delayed draw term loans, combined with the favorable terms and extended maturities, positions Cadre to accelerate inorganic growth in the law enforcement and military safety equipment sectors. This expansion strengthens Cadre's competitive position in the acquisition market and demonstrates the company's commitment to long-term growth and success.