By Paul A. Harris
Portland, Ore., Dec. 6 - Academy Sports + Outdoors priced an upsized $500 million issue of 8% cash/8¾% PIK senior PIK toggle notes due June 15, 2018 at 99.5 to yield 8.114% on Thursday, according to a market source.
The size of the offering was increased from $400 million originally.
Goldman Sachs & Co., Credit Suisse Securities (USA) LLC and KKR Capital Markets were the joint bookrunners for the quick-to-market deal.
Proceeds will be used to fund a sponsor dividend.
The issuer is a Katy, Texas-based chain of sporting goods and outdoor stores.
| Issuer: | New Academy Finance Co. LLC (Academy Sports + Outdoors)
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| Amount: | $500 million, increased from $400 million
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| Maturity: | June 15, 2018
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| Securities: | Senior PIK toggle notes
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| Physical bookrunners: | Goldman Sachs & Co., Credit Suisse Securities (USA) LLC, KKR Capital Markets
|
| Cash coupon: | 8%
|
| PIK coupon: | 8¾%
|
| Price: | 99.5
|
| Cash yield: | 8.114%
|
| Spread: | 688 bps
|
| First call: | Callable after one year at 102
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| Trade date: | Dec. 6
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| Settlement date: | Dec. 13
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A
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| Marketing: | Quick-to-market
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