Big 5 Sporting Goods Corporation has agreed to amend and extend its credit facility with Bank of America, N. A., as administrative agent and lender.
“We are pleased to renew our credit facility and appreciate the continued support of Bank of America,” offered Big 5 CFO Barry Emerson. “This multi-year facility is expected to help provide financial flexibility to manage our business through the current dynamic retail environment and over the long term.”
The Loan Agreement, which replaces the company’s prior financing agreement with Bank of America, has a five-year term that matures in December 2029 and provides a secured revolving credit facility with aggregate committed availability of up to $150 million. The company may request additional increases in aggregate availability, which Bank of America can provide up to $50 million for an aggregate availability of up to $200 million.
Loans under the new credit facility will bear interest based on SOFR rates or a specified base rate (generally Bank of America’s prime rate), plus a margin determined based on the remaining availability under the credit line and satisfaction of financial covenants. The margin on SOFR rate loans ranges from 1.75 percent to 2.125 percent, and the margin on base rate loans ranges from 0.75 percent to 1.125 percent, subject to interest rate floors of zero.
The company said it will be filing with the Securities and Exchange Commission a Current Report on Form 8-K, which will include additional details about the Loan Agreement.
Image courtesy Big 5 Sporting Goods Corporation
