Sportsman's trims loan to $125 million, flexes to Libor plus 600 bps

By Sara Rosenberg

New York, Nov. 13 - Sportsman's Warehouse Inc. downsized its six-year first-lien term loan (B3/B) to $125 million from $145 million and increased pricing to Libor plus 700 basis points from revised talk of Libor plus 600 bps and initial talk of from Libor plus 525 bps, according to a market source.

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

Upon the first pricing flex, the company added hard call protection of 102 in year one and 101 in year two to the term loan, versus the initially proposed 101 repricing protection for one year.

Under the 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.

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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