Benzinga | May 25, 2021 04:03PM EDT

Academy Sports + Outdoors Announces $99M Paydown, Refinancing Of Term Loan And Upgrade To Credit Rating

Academy Sports and Outdoors, Inc. ("Academy" or the "Company") (NASDAQ:ASO) announced today that it has completed a paydown and refinancing of its term loan and that its S&P Global credit rating has been upgraded.

On May 25, 2021, Academy reduced its term loan obligation by $99 million, leaving an outstanding principal balance of $300 million, and lowered the interest rate on the remaining balance by 125 basis points to LIBOR + 3.75%. This new rate will save the Company approximately $9 million in interest expense on an annualized basis.

Additionally, S&P Global recently raised its issuer-credit rating to B+ from B based on improved credit metrics and financial policy, strong business trends and the recent reduction of its largest stockholder's ownership position to below 40%. A copy of the report can be found on Academy's investor relations website, http://investors.academy.com.

"I am pleased to announce another action taken by the Company to strengthen our balance sheet and further improve our financial standing," said Ken Hicks, Chairman, President and Chief Executive Officer. "Academy has made significant strides in deleveraging over the last year and is better positioned for future growth opportunities."