Big 5 Sporting Goods Corporation announced on December 19, 2024, that it has amended and extended its credit facility with Bank of America, N.A. This new Loan Agreement replaces the company's previous financing arrangement, providing a five-year term that extends its maturity until December 2029.
The renewed facility is a secured revolving credit facility with an aggregate committed availability of up to $150 million. The company also retains the option to request additional increases in availability, which Bank of America may provide, for up to an additional $50 million, potentially bringing the total availability to $200 million.
Loans under the new credit facility will bear interest based on SOFR rates or a specified base rate, plus a margin determined by the remaining availability and satisfaction of financial covenants. The margin on SOFR rate loans ranges from 1.75% to 2.125%, while the margin on base rate loans ranges from 0.75% to 1.125%, both subject to interest rate floors of zero. This renewal is expected to provide financial flexibility for the company to manage its business through the current retail environment and over the long term.
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