The Sports Authority Inc. is seeking a $350 million term loan to refinance debt, according to reports. Bank of America Corp. and JPMorgan Chase & Co. will arrange the seven-year debt. The Sports Authority plans to use the proceeds from the term loan to refinance an existing term loan and buy back a portion of its subordinated debt.

The company took on that debt in 2006 to help pay for its approximately $1.36 billion leveraged buyout by Leonard Green.

Separately, ratings agency Moody's Investors Service has raised its outlook on The Sports Authority Inc. to reflect the retailer's improved profitability, leading position in the market and strengthened liquidity.

The firm said Friday it revised the company's outlook to “Stable” from “Negative,” reaffirmed the company's “B3” corporate family and probability of default ratings and assigned a “B3” rating to the company's proposed $300 million senior unsecured term loan.

Proceeds from the proposed term loan will be used to refinance the existing term loan and a portion of senior subordinated notes.

Moody's said the company's credit metrics are weak but improving, but a ratings upgrade isn't likely in the near term because The Sports Authority is just starting to recover from the recession.