Remington Arms amends loan, getting $25 million term loan, upsizing revolver

By Sara Rosenberg

New York, Nov. 13 - Remington Arms Co. Inc. amended its credit facility on Tuesday, adding a $25 million term loan commitment and increasing the revolver to $155 million from $140 million, according to an 8-K filed with the Securities and Exchange Commission.

The term loan is priced at Libor plus 200 basis points.

In addition, under the amendment, the sub-limit on the inventory formula amount was increased to $77.5 million from $70 million.

The amendment was done to provide the company with additional capacity and flexibility to support strategic initiatives, including factory improvements, penetration of certain sales channels, new product development, one or more potential acquisitions and other corporate purposes.

Wachovia is the lead bank on the deal.

Remington is a Madison, N.C., manufacturer of firearms and ammunition.

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