Sportsman’s Warehouse Holdings amended its existing credit agreement to increase the borrowing capacity by $100 million to $250 million, subject to a borrowing base calculation and to provide for a new $40 million term loan.
The company used the proceeds from the new term loan and borrowings under the revolving credit facility to repay its prior term loan in full that was scheduled to mature on December 3, 2020. The maturity date of the revolving credit facility was extended to May 23, 2023, and the term loan will also mature on May 23, 2023. As a result of the company’s repayment of its prior term loan, the company will no longer be subject to financial ratio covenants in its debt agreements, and the refinancing is expected to reduce interest expense by approximately $4.5 million on an annualized basis.
Jon Barker, CEO, said, “We are pleased to announce the amendment and restatement of our credit agreement, which provides us with additional capacity under our revolving credit facility and reduces our annual interest expense with the refinancing of our prior term loan. We thank our lenders for their ongoing support and confidence.”
The arrangement of the revolving credit facility was led by Wells Fargo Capital Finance.
“As a longstanding customer of Wells Fargo, we have seen Sportsman’s Warehouse go through strong growth and expansion across the country,” said Pete Foley, managing director, Wells Fargo Capital Finance.
Sportsman’s Warehouse is a high-growth outdoor sporting goods retailer.
