Big 5 Sporting Goods Secures $150 Million Credit Facility with Bank of America

Big 5 Sporting Goods Corporation (NASDAQ:BGFV) announced on December 18, 2024, the entry into a First Amended and Restated Loan Agreement with Bank of America, N.A. The agreement, which includes Big 5 Corp. and Big 5 Services Corp., replaces a prior agreement and provides a revolving credit facility with a maturity date of December 18, 2029, with an aggregate committed availability of up to $150 million. Additional increases up to $50 million are possible, bringing the total aggregate availability to $200 million, with a sublimit of $50 million for letter of credit issuances.

Under the terms of the agreement, Big 5 Sporting Goods can borrow amounts not exceeding the Line Cap, which is determined by the aggregate committed availability or Borrowing Base. The Borrowing Base considers factors like eligible credit card receivables, inventory values, and other reserves established by Bank of America.

Loans may be designated as base rate loans or term SOFR rate loans. Interest rates vary based on the Average Daily Availability, with margins set accordingly. The Loan Agreement further imposes a commitment fee based on the unused portion of the credit facility.

The Loan Agreement includes covenants requiring a fixed charge coverage ratio and limits on incurring additional debts, transferring assets, or paying dividends, among other restrictions. Events of default provisions and the designation of Bank of America for treasury needs are also outlined in the agreement.

In a supplementary press release issued on December 19, 2024, Big 5 Sporting Goods Corporation highlighted the renewal of the credit facility and expressed gratitude for Bank of America’s continued support. The Company’s Chief Financial Officer, Barry Emerson, emphasized the financial flexibility provided by the multi-year facility, aiding the company in navigating the evolving retail landscape.

Big 5 Sporting Goods Corporation currently operates 422 stores across the western United States and offers a diverse product range encompassing athletic gear, outdoor equipment, and recreational items. The Company stated that further details about the Loan Agreement will be included in a Current Report on Form 8-K to be filed with the Securities and Exchange Commission.

The content of the Loan Agreement and related information is available in the official filings lodged with the Securities and Exchange Commission. It is important to note that forward-looking statements are subject to risks and uncertainties, as stated under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

In conclusion, the secured credit facility marks a strategic move for Big 5 Sporting Goods Corporation, providing vital financial support and flexibility to navigate the competitive retail landscape effectively.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Big 5 Sporting Goods’s 8K filing here.

About Big 5 Sporting Goods

Big 5 Sporting Goods Corporation operates as a sporting goods retailer in the western United States. Its products include athletic shoes, apparel, and accessories. The company also offers a selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, tennis, golf, and winter and summer recreation, as well as home recreation.