Big Five Sporting Goods to redeem some 10 7/8% notes

New York, March 16 - Big 5 Sporting Goods Corp. (Ba3/B) said that its wholly owned subsidiary, Big 5 Corp., will redeem $15 million principal amount of its 10 7/8% senior notes due 2007, using funds available under a revolving credit facility. The notes will be redeemed at 103.65% of their face value.

Big Five, an El Segundo, Calif.-based sporting goods retailer, said that following the redemption, which is scheduled to be completed in mid-April, the outstanding balance of the 10 7/8% notes will be reduced to a face amount of $33.1 million from an original face amount of $131 million when the notes were issued in November 1997. The company said similar redemptions in 2003 totaled $55 million.

Big 5 estimates that the redemption will result in annualized interest expense savings of about $700,000, or three cents per diluted share, on an after-tax basis, based on current interest rates.

Taking into account the write-off of unamortized financing fees and original issue discount, the company will recognize a resulting after-tax charge of some $500,000, or two cents per diluted share, in the 2004 second fiscal quarter.

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