Vista Outdoor to pay down debt with Savage brand proceeds

By Rebecca Melvin

New York, July 8 – Vista Outdoor Inc. will use $158 million from the sale of its Savage Arms and Stevens firearms brads to pay down debt, according to a company release.

The company received a total of $170 million for the sale from a financial buyer, but $12 million will be in the form of a five-year note issued by the buyer to Vista Outdoor.

The sale is part of the company’s previously announced transformation plan.

“Reducing our debt is a key part of turning around our business," chief executive officer Chris Metz said in the release. “Selling Savage and further reducing our overall leverage will improve our financial flexibility and better position the company for long-term growth.”

Robert W. Baird & Co. served as transaction and financial advisor and Reed Smith LLP served as legal advisor to Vista Outdoor in connection with the transaction.

Vista Outdoor is an outdoor sports and recreation products company headquartered in Anoka, Minn.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.