Academy Sports announces $500 million senior secured notes offering

Academy Sports + Outdoors Inc. (NASDAQ: ASO) announced that its subsidiary Academy, Ltd. plans to offer $500 million in senior secured notes due 2031 through a private placement exempt from Securities Act registration requirements.

The company stated it will use proceeds from the notes offering to redeem all outstanding senior secured notes due 2027, repay amounts under its term loan facility, cover related fees and expenses, and fund general corporate purposes.

Academy delivered a conditional redemption notice for all 2027 notes at 100% of principal amount plus accrued interest. The redemption date is set for May 14, 2026, contingent upon completing an offering of at least $500 million in new notes by that date. The Bank of New York Mellon Trust Company serves as trustee and paying agent for the redemption.

The new notes will be guaranteed by certain Academy subsidiaries that guarantee the company's credit facilities. The notes will be secured by first-priority liens on substantially all personal property of the issuer and guarantors, and second-priority liens on personal property securing the asset-based revolving credit facility.

The notes are being offered only to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States under Regulation S of the Securities Act. The securities will not be registered under the Securities Act or state securities laws.

Academy operates more than 300 sporting goods and outdoor recreation retail stores across 21 states. The company was founded in 1938 in Texas and focuses on outdoor, apparel, sports and recreation, and footwear categories through national brands and private label products.

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