Vista Outdoor has completed the refinancing of its existing senior secured credit facilities by replacing those facilities with a new asset-based revolving credit agreement and term loan credit agreements.
“I’m proud of our team for meeting our commitments to get these new credit agreements in place,” said Vista Outdoor Chief Executive Officer Chris Metz. “This was an important deliverable, not only for the short-term health of our business but also as we continue to transform Vista Outdoor. This new asset-based loan structure gives us more flexibility to facilitate the completion of our strategic transformation plan while supporting the growth of our brands and improving bottom line performance.”
The new credit agreements provide for a $450 million revolving credit facility, a $109.3 million term loan, and a $40 million junior term loan. Vista Outdoor used the proceeds from initial drawings on the revolver and term loan to pay off existing term loans and revolving credit facility borrowings. Future borrowings under the amended revolving credit facility will be used for general corporate purposes. All of the agreements mature on 19th November 2023.
“We are pleased we were able to establish more favorable terms under our credit agreements,” said Mick Lopez, Vista Outdoor’s Chief Financial Officer. “The new debt structure eliminates certain financial covenants that we were subject to in our previous credit agreement. It also will reduce our interest cost due to a decrease in the weighted average interest rate and a decrease in the annual commitment fee. We now have ample access to capital as we work toward our new strategic direction as a company.”