Remington Arms gets $140 million amended and restated revolver

By Sara Rosenberg

New York, March 21 - Remington Arms Co. Inc. closed on a $140 million amended and restated revolving credit facility due June 30, 2010, according to an 8-K filed with the Securities and Exchange Commission Tuesday.

Wachovia acted as the arranger and administrative agent on the deal, Bank of America acted as syndication agent and National City Business Credit acted as documentation agent.

The facility replaces the company's previous $101 million revolver that was scheduled to mature on Jan. 24, 2008.

With this new deal, the applicable margin on the revolver was changed to be based on consolidated EBITDA as opposed to leverage, beginning in 2007 (see table).

The revolver carries an initial rate of Libor plus 200 basis points.

Other differences between the amended and restated revolver and the previous agreement include the elimination of the leverage covenant, decrease in the required minimum amounts of consolidated EBITDA and modification of the minimum amounts of availability needed to avoid the imposition of a minimum fixed charge coverage ratio covenant.

The amendment and restatement was completed on March 15.

Remington is a Madison, N.C., designer, producer and seller of sporting goods products for the hunting, shooting sports and fishing markets.

Table: Applicable Margin

Consolidated EBITDA Libor Rate

Less than $35 million 2.25%

Equal to or greater than $35 million but less than $40 million 2.00%

Equal to or greater than $40 million 1.75%

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