KATY, Texas, May 25, 2021 / PRNewswire / – Academy Sports and Outdoors, Inc. (“Academy” or the “Company”) (NASDAQ: ASO) announced today that its term loan has been repaid and refinanced and that S&P Global has received creditworthiness was updated.
On May 25, 2021The academy reduced its term loan obligation $ 99 millionand leaves an outstanding principal of $ 300 millionand lowered the interest rate on the remaining balance by 125 basis points to LIBOR + 3.75%. This new rate saves the company roughly $ 9 million in interest expenses on an annual basis.
Additionally, S&P Global recently upgraded its issuer credit rating from B to B + based on improved credit metrics and financial policies, strong business trends and the recent reduction in its largest shareholder’s ownership position to below 40%. A copy of the report is available on the Academy’s Investor Relations website at http://investors.academy.com.
“I am pleased to announce another move the company has taken to strengthen our balance sheet and further improve our financial performance,” he said Ken Hicks, Chairman, President and Chief Executive Officer. “The academy has made significant strides in deleveraging over the past year and is better positioned for future growth opportunities.”
About the academy
Academy is a leading retailer of sporting and outdoor recreational items The United States. Originally founded as a family business in 1938 TexasThe academy has grown to 259 stores in 16 contiguous states. The Academy’s mission is to provide “fun for everyone”. The Academy accomplishes this mission with a localized merchandising strategy and value proposition that creates a strong connection with a wide range of consumers. The Academy’s product range focuses on the key categories of outdoor, clothing, shoes, and sports and leisure through leading national brands and a portfolio of 19 private labels that go far beyond the traditional range of sporting goods and clothing. More information is available at www.academy.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the Academy’s current expectations and are not guarantees of future performance. You can identify these forward-looking statements by words such as “outlook”, “guidance”, “belief”, “expectation”, “potential”, “continued”, “may”, “will”, “should”. “could”, “seeks”, “projects”, “forecast”, “intends”, “plans”, “estimates”, “anticipates” or the negative version of these words or other comparable words. The forward-looking statements are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Actual results could differ materially from these expectations due to changes in global, regional or local economic, business, competitive, market, regulatory and other factors, many of which are beyond the control of the Academy. Important factors that could cause actual results to differ materially from those contained in the forward-looking statements are set forth in the Academy’s filings with the SEC, including the Annual Report on Form 10-K for the past fiscal year January 30, 2021under the heading “Risk Factors” which may be updated from time to time in our regular filings with the SEC. All forward-looking statements in this press release speak only as of the date of this press release. The Academy assumes no obligation to publicly update or revise any forward-looking statements as a result of new information, future developments or for any other reason, unless this is required by applicable securities laws.
SOURCE Academy Sport + Outdoors