Vista Outdoor obtains $400 million revolver, $640 million term loan

By Tali Rackner

Norfolk, Va., April 4 – Vista Outdoor Inc. entered into a $400 million revolving credit facility and a $640 million term loan A facility on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The new facilities are to complete the refinancing of its $400 million revolver and a $350 million term loan A.

The facilities mature on April 1, 2021.

Vista may use up to $100 million of the revolver for letters of credit and up to $25 million for swingline loans.

The company may also incur additional term loans and/or increase the amount of the revolver up to the sum of $300 million plus an amount such that Vista’s consolidated senior secured leverage ratio would not be greater than 2 times.

The initial interest rate is Libor plus 175 basis points, with a 30 bps commitment fee on the revolver.

Interest ranges from Libor plus 150 bps to Libor plus 200 bps, based on the company’s consolidated leverage ratio. The commitment fee on the revolver ranges from 25 bps to 35 bps, also based on leverage.

The credit agreement contains financial covenants requiring Vista to maintain a maximum consolidated leverage ratio of 3.5 times (subject to certain adjustments in the case of certain acquisitions) and a minimum consolidated interest coverage ratio of 3 times.

Loans under the term A loan facility are subject to quarterly principal payments of 1.25% of the initial principal amount of the term A loan facility with the remaining balance due on the maturity date.

There are no scheduled principal payments under the revolver. Any outstanding revolving loans under the revolver will be payable in full at maturity.

Bank of America, NA is the administrative agent on the deal. Bank of America Merrill Lynch, U.S. Bank NA, MUFG, J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, Bank of the West and PNC Bank, NA are joint lead arrangers and bookrunners. Bank of the West, MUFG, JPMorgan Chase Bank, NA, PNC Bank, U.S. Bank and Wells Fargo Bank, NA, are co-syndication agents. BMO Harris Bank NA, Branch Banking and Trust Co., Capital One NA and Regions Bank are co-documentation agents.

Vista Outdoor is a Clearfield, Utah-based designer, manufacturer and marketer of consumer products in the outdoor sports and recreation markets.

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