Opus Bank’s Commercial Banking division provides senior debt financing to Drum Workshop, Inc. to simplify its credit facilities
Overview of Transaction
- Prior to its acquisition of additional brands, Drum Workshop, Inc. (“Drum Workshop”) founded in 1972 and headquartered in Oxnard, CA, was already the largest American designer, manufacturer, and marketer of drums, pedals, drum hardware, and accessories. Those products were sold under the iconic premium Drum Workshop and Pacific Drums and Percussion® (PDP) brands.
- In December 2014, Drum Workshop purchased the percussion brands Latin Percussion®, Toca® Percussion, and Gibraltar® Hardware, as well as the Ovation® guitar brand. At that time, Drum Workshop also purchased all the assets of Gretsch® Drums and entered into agreements to license the KAT® Percussion and Gretsch® Drum brands.
Significance of Transaction
- To facilitate an acquisition in 2014, Drum Workshop worked with several lenders to put together acquisition and working capital credit facilities.
- As the acquisition seasoned, Drum Workshop felt that it was time to replace those lenders with a single lender that could provide the flexibility and financing appropriate for the company’s next stage.
Opus Bank's Role
- Opus Bank worked closely with Drum Workshop’s executive management to structure multi-year facilities that will replace its higher cost credit facilities and meet the company’s growth plans.