Previously we reported that Weber was looking at taking on more debt from their largest shareholder, BDT Capital, to make it through the winter. Then a rumor was confirmed that BDT Capital had made an acquisition offer to Weber. The offer was to buy the remaining shares of Weber that they didn’t own for $6.25 share.
While Weber is still evaluating that acquisition offer, Bloomberg is reporting that Weber has agreed to take a $60 million loan from BDT Capital.
What’s interesting about Weber adding more leverage, is in BDT Capital’s acquisition offer they noted that Weber already has too much leverage.
OUR PROPOSAL OFFERS IMMEDIATE LIQUIDITY TO THE COMPANY’S PUBLIC STOCKHOLDERS, WHILE ELIMINATING THE RISKS TO THE PUBLIC STOCKHOLDERS IN THE CURRENT MARKET AND OPERATING ENVIRONMENT THAT THE COMPANY’S CURRENT LEVERAGE POSITION IS UNSUSTAINABLE AND THAT THE COMPANY MAY BE UNABLE TO EFFECT A RECAPITALIZATION.BDT Capital Partners
BDT Capital has said that their acquisition offer isn’t contingent on whether Weber takes on more debt from them.
We’re still waiting on Weber to announce when they’ll release earnings for the quarter ended September 2022. Traeger just reported their Q3 earnings, which were even lower than expected.