Sportsman's ups spread on $145 million term loan to Libor plus 600 bps

By Sara Rosenberg

New York, Oct. 23 - Sportsman's Warehouse Inc. increased pricing on its $145 million six-year first lien term loan (B3/B) to Libor plus 600 basis points from Libor plus 525 bps, according to a market source.

The 1.5% Libor floor and original issue discount of 99 were left unchanged.

With the coupon change, the company added hard call protection of 102 in year one and 101 in year two to the term loan, versus the previously proposed 101 repricing protection for one year, the source said.

Under the new call protection, excess cash flow and asset sale paydowns will be made at par, but everything else is at the call premium.

Covenants include maximum leverage and interest coverage ratios.

Commitments are still due at 5 p.m. ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Proceeds will be used to fund a dividend.

Sportsman's is a Midvale, Utah-based outdoor sporting goods retailer.

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