Compass Diversified amends credit facility, restores liquidity access

Compass Diversified Holdings ( (CODI) ) has shared an update.

On December 19, 2025, Compass Diversified Holdings LLC entered into a fifth amendment to its credit agreement and related transaction letter with Bank of America and a majority of its lenders, restoring full access to its $100 million revolving credit facility and securing waivers of prior events of default tied to financial covenants and issues at subsidiary Lugano Holding, Inc., which filed for Chapter 11 protection in November 2025. The amended terms reset interest rate margins based on leverage, require aggressive application of disposition and deleveraging proceeds to debt repayment, impose tighter reporting and budgeting obligations—including detailed 13‑week cash flow forecasts and controls over the Lugano debtor-in-possession budget—and cap management fees and certain restricted payments unless leverage targets are met, while also revising financial covenants after March 31, 2025 and establishing potential milestone fees if leverage remains elevated through early 2027, collectively bolstering liquidity but placing the company under stricter lender oversight as it seeks to reduce leverage and stabilize its capital structure.

The most recent analyst rating on (CODI) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Compass Diversified Holdings stock, see the CODI Stock Forecast page.

Spark’s Take on CODI Stock

According to Spark, TipRanks’ AI Analyst, CODI is a Neutral.

Compass Diversified Holdings faces significant challenges, primarily due to financial and operational issues highlighted by the bankruptcy of a subsidiary and high leverage. While the company maintains a high dividend yield, its negative P/E ratio and bearish technical indicators reflect underlying risks. The stock’s score is primarily impacted by financial performance and corporate events, with valuation and technical analysis also contributing to the cautious outlook.

To see Spark’s full report on CODI stock, click here.

More about Compass Diversified Holdings

Compass Diversified (NYSE: CODI) is an owner of leading middle-market branded consumer and industrial businesses, providing financial and operational support to a diversified portfolio of subsidiaries. The company focuses on cash flow generation, disciplined capital allocation and operational execution across its operating units to drive long-term shareholder value.

Average Trading Volume: 1,869,871

Technical Sentiment Signal: Sell

Current Market Cap: $366.4M

For an in-depth examination of CODI stock, go to TipRanks’ Overview page.