Sportsman’s Warehouse expands revolving credit facility to $250 mln from $150 mln

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Sportsman’s Warehouse shares jump 3% after moves to lower debt service costs

Sportsman’s Warehouse Holdings Inc. shares jumped 3% in premarket trade Thursday, after the company said it is amending a credit facility and refinancing a term loan in moves that will lower its debt service costs. The company said it has amended its revolving credit facility by adding $100 million to bring it to $250 million. Proceeds will be used to pay down a prior term loan that was slated to mature in 2020. “As a result of the company’s repayment of its prior term loan, the company will no longer be subject to financial ratio covenants in its debt agreements, and the refinancing is expected to reduce interest expense by approximately $4.5 million on an annualized basis,” the company said in a statement. Shares are down 29% in 2018 so far, while the S&P 500 has gained 2.2%.

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