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

New York, Nov. 5 - Big 5 Sporting Goods Corp. said that its wholly-owned subsidiary, Big 5 Corp., will redeem $35 million principal amount of its 10 7/8% senior notes due 2007, using funds available under a revolving credit facility. Following the redemption, which is scheduled to be completed in early December, the outstanding balance of the 10 7/8% notes will be reduced to a face amount of $48.1 million, from an original face amount of $131 million when the notes were issued in November 1997.

Big Five, an El Segundo, Calif.-based sporting goods retailer in the western U.S., estimated that the redemption will result in annualized interest expense savings of approximately $1.625 million on an after-tax basis, based on current interest rates.

It said the notes will be redeemed at 103.65% of their face value, and taking into account the write-off of unamortized financing fees and original-issue discount, the company will recognize a resulting after-tax charge of approximately $1.15 million in the 2003 fourth fiscal quarter.

The company made a similar redemption of $20 million in the first quarter of 2003.

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