Sports Authority Seeks $630M Term Loan
November 2, 2012
The Sports Authority is seeking a seven-year, $630 million senior secured term loan.
Proceeds will be used to refinance existing debt, including a $295 million term loan due in 2017, according to a presale report published by Moody’s Investors Service Thursday.
Bank of America Merrill Lynch is on the left of the deal, according to KDP Advisor.
Moody’s has revised the outlook on its B3 corporate family rating on The Sports Authority to stable stable from negative; it also assigned a B3 rating to the proposed term loan.
The change in outlook to stable from negative was based on the reduction of future interest expense pro forma for the refinancing combined with management's strategic initiatives to improve store efficiencies.
"The dollar-for-dollar refinancing is leverage neutral but improves the company's interest coverage," stated Moody's analyst Mariko Semetko said in the report.