Sport Supply Group, Inc., which recently changed its name from
Collegiate Pacific, raised $18.3 million from the private placement of
1.83 million shares. The shares were sold for $10 each to an affiliate
of Los Angeles-based investment firm Andell Holdings, LLC.
The company has reduced its bank debt by $14.5 million in the last
seven months through the improvement in the collection of receivables,
as well as the reduction of inventories through the consolidation of
facilities and elimination of SKUs. Upon closure of this transaction,
bank debt will be reduced by an additional $18 million to about $5
million, and it expects to have nothing drawn against its $55 million
credit facility by fiscal year end.
