Big 5 Sporting Goods Corporation has announced that its wholly-owned subsidiary, Big 5 Corp., will redeem $35 million principal amount of its 10.875% senior notes due 2007, using funds available under a revolving credit facility.

Following the redemption, which is scheduled to be completed in early December 2003, the outstanding balance of the company's 10.875% senior notes will be reduced to a face amount of $48.1 million from an original face amount of $131 million when the notes were issued in November 1997.

Big 5 estimates that the redemption will result in annualized interest expense savings of approximately $1,625,000, on an after-tax basis, based on current interest rates. The notes will be redeemed at 103.65% of their face value, and taking into account the write-off of unamortized financing fees and original issue discount, the company will recognize a resulting after-tax charge of approximately $1,150,000 in the 2003 fourth fiscal quarter.

“This transaction follows a similar redemption of $20 million in the first quarter of this year and will allow us to continue to significantly lower our annual interest expense, which will positively add to earnings and enhance shareholder value,” said Steven G. Miller, Big 5's Chairman, President and Chief Executive Officer.