Academy Sports + Outdoors said it plans to raise $500 million through a private offering of senior secured notes due 2031, then use the proceeds to refinance existing debt.
The company said the new notes would fund the redemption of its outstanding senior secured notes due 2027, repay all amounts outstanding under its term loan facility, cover related fees and expenses, and support general corporate purposes.
Academy also delivered a conditional redemption notice for the 2027 notes at 100.00% of principal, plus accrued and unpaid interest. The redemption date is May 14, 2026, but the redemption depends on the company completing the $500 million notes offering by that date.
The new notes will be guaranteed by certain subsidiaries and secured by a first-priority lien on substantially all of the issuer’s and guarantors’ personal property, along with a second-priority lien on the same collateral that secures the company’s asset-based revolving credit facility.
Academy said the 2027 notes will remain outstanding if the financing condition is not met or is waived. Following these announcements, the company's shares moved 0.74%, and are now trading at a price of $57.19. Check out the company's full 8-K submission here.
