Performance Sports Group secures amendments to DIP term and ABL loans

By Caroline Salls

Pittsburgh, Dec. 8 – Performance Sports Group Ltd. entered into amendments to its debtor-in-possession term loan and ABL credit agreements, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The company said each agreement was amended to refer to an updated budget.

In addition, related budget covenants were amended, as were agreement milestones.

Under the term loan amendment, a carve-out included in the agreement cannot exceed $3.75 million in connection with both term collateral and ABL collateral.

The covenant borrowing base was set at $4 million in the term loan amendment.

Also under the term loan amendment, competing bids for the company’s assets must be due no later than Jan. 25, the auction must be held by Jan. 30, court approval for the sale must be obtained by Feb. 6, and the sale must close and DIP term obligations paid in full by Feb. 23, subject to an extension to obtain regulatory approval.

The letter-of-credit sublimit was increased to $3.5 million from $1.5 million under the ABL facility amendment.

The ABL facility amendment includes the same sale milestones as the term loan amendment.

Performance is based in Exeter, N.H., and makes sports equipment and apparel. The company filed bankruptcy on Oct. 31 in the U.S. Bankruptcy Court for the District of Delaware under Chapter 11 case number 16-12373.

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