Remington Outdoor seeks $175 million add-on term loan at 99 OID

By Sara Rosenberg

New York, Dec. 10 - Remington Outdoor Co. launched on Tuesday a $175 million add-on covenant-light term loan that is talked at Libor plus 425 basis points with a 1.25% Libor floor and an original issue discount of 99, according to sources.

The loan has 101 soft call protection for one year, sources said.

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

Commitments are due on Thursday, sources added.

Proceeds will be used to fund a share repurchase.

Previously, the company was looking at getting a new $200 million seven-year holdco debt priced at the greater of Libor plus 1,100 bps or 13.1% and $25 million of equity from a new investor, but that plan has now been dropped in favor of the add-on term loan.

The company is still amending its existing credit facility to allow for the new debt, and lenders are still being offered a 25 bps amendment fee, sources added.

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

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