Bank of America acted as administrative agent and lender on a $150 million secured revolving credit facility for Big 5 Sporting Goods.
The loan agreement has a five-year term which matures in February 2026. The secured revolving credit facility has an aggregate committed availability of up to $150 million, but Big 5 Sporting Goods may request additional increases in aggregate availability, which the lender has the option to provide, up to $200 million. Loans under the new credit facility will bear interest based on LIBO rates or a specified base rate (generally Bank of America’s prime rate), plus a margin that is determined based on the remaining availability under the credit line. The margin on LIBO rate loans ranges from 1.375% to 1.5% and the margin on base rate loans ranges from 0.375% to 0.5%, subject to interest rate floors of zero. The commitment fee assessed on the unused portion of the credit facility is 0.2% per annum.
“We are pleased to put a new credit facility in place on such favorable terms. We believe this facility underscores the strength of our financial condition, as we remain debt-free with a cash balance of $64.7 million as of the end of fiscal 2020. We appreciate the support of Bank of America, as this multi-year facility is expected to help provide the financial flexibility to support our business through the current dynamic retail environment and over the long term,” Barry Emerson, CFO of Big 5 Sporting Goods, said.
