Business
Academy Sports + Outdoors Announces $99 Million Paydown and Refinancing of its Term Loan and Upgrade to Credit Rating
KATY, Texas, May 25, 2021 /PRNewswire/ -- Academy Sports and Outdoors, Inc. ("Academy" or the "Company") (NASDAQ: ASO) announced today that it has completed a
About this update from Academy Sports And Outdoors, Inc.
[{"type":"text","content":"KATY, Texas, May 25, 2021 /PRNewswire/ -- Academy Sports and Outdoors, Inc. (\"Academy\" or the \"Company\") (NASDAQ: ASO) announced today that it has completed a paydown and refinancing of its term loan and that its S&P Global credit rating has been upgraded.\n\n \n \n \n \n \n \n\n \nOn May 25, 2021, Academy reduced its term loan obligation by $99 million, leaving an outstanding principal balance of $300 million, and lowered the interest rate on the remaining balance by 125 basis points to LIBOR + 3.75%. This new rate will save the Company approximately $9 million in interest expense on an annualized basis.\nAdditionally, S&P Global recently raised its issuer-credit rating to B+ from B based on improved credit metrics and financial policy, strong business trends and the recent reduction of its largest stockholder's ownership position to below 40%. A copy of the report can be found on Academy's investor relations website, http://investors.academy.com.\n\"I am pleased to announce another action taken by the Company to strengthen our balance sheet and further improve our financial standing,\" said Ken Hicks, Chairman, President and Chief Executive Officer. \"Academy has made significant strides in deleveraging over the last year and is better positioned for future growth opportunities.\"\nAbout AcademyAcademy is a leading full-line sporting goods and outdoor recreation retailer in the United States. Originally founded in 1938 as a family business in Texas, Academy has grown to 259 stores across 16 contiguous states. Academy's mission is to provide \"Fun for All\" and Academy fulfills this mission with a localized merchandising strategy and value proposition that strongly connects with a broad range of consumers. Academy's product assortment focuses on key categories of outdoor, apparel, footwear and sports & recreation through both leading national brands and a portfolio of 19 private label brands, which go well beyond traditional sporting goods and apparel offerings. For more information, visit www.academy.com.\nForward Looking StatementsThis press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Academy's current expectations and are not guarantees of future perform...