Academy launches roughly $1.83 billion term B at Libor plus 350-375 bps

By Sara Rosenberg

New York, June 2 – Academy Ltd. (Academy Sports + Outdoors) launched on Tuesday its $1,825,000,000 seven-year term loan B (B) with price talk of Libor plus 350 basis points to 375 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has a 25 bps initial public offering step-down and 101 soft call protection for six months, the source said.

The company’s $2,475,000,000 credit facility also includes a $650 million ABL revolver.

Morgan Stanley Senior Funding Inc., KKR Capital Markets, Goldman Sachs Bank USA, Barclays, J.P. Morgan Securities LLC, Mizuho and Wells Fargo Securities LLC are the bookrunners on the term loan B, with Morgan Stanley left lead arranger. JPMorgan is the left lead arranger on the revolver.

Proceeds will be used with cash on hand to refinance all of the company’s existing debt and fund a one-time dividend.

Commitments are due on June 11, the source added.

Academy is a Katy, Texas-based sports, outdoor and lifestyle retailer.

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