Remington Outdoor launches loan amendment to allow for holdco debt

By Sara Rosenberg

New York, Dec. 9 - Remington Outdoor Co. launched with its call on Monday a credit facility amendment proposal that would allow for a new $200 million seven-year holdco debt priced at the greater of Libor plus 1,100 basis points or 13.1%, according to sources.

Also, the amendment would have 101 soft call protection for six months to the credit agreement, sources said.

Lenders are being offered a 25 bps amendment fee.

Proceeds from the holdco loan, along with $25 million of equity, will be used to help fund the purchase of a minority interest in the company by an investor from Cerberus Capital.

Bank of America Merrill Lynch is the lead bank on the deal.

Remington is a Madison, N.C.-based designer and manufacturer of firearms, ammunition and related products.

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