1 Mar, 2021

Great American Outdoors Group wraps $4.5B term loan; terms

Investors have received allocations of Great American Outdoors Group LLC's amended-and-extended and repriced term loan that totals $4.095 billion and the accompanying $405 million add-on, according to sources. The seven-year term loan B priced at L+425, with a 0.75% Libor floor and an offer price of 99.5 via lead arranger J.P. Morgan and was quoted at 100/100.5 following allocation. Of the additional $405 million of proceeds, $275 million will be used to further redeem third-party equity and the remaining $130 million is earmarked for general corporate purposes. The transaction lowers the spread on the term loan from L+500, with a 0.75% Libor floor, and extends the maturity from September 2024. The rated entity is Great Outdoors Group LLC. Great American Outdoors is a specialty retailer of outdoor equipment and apparel. Terms:

Borrower Great American Outdoors Group
Issue $4.5 billion term loan B ($4.095 billion A-and-E tranche, $405 million add-on)
UoP A-and-E/Repricing; GCP
Spread L+425
Libor floor 0.75%
Price 99.5
Tenor 7-year
YTM 5.19%
Four-year yield 5.24%
Call protection 101 soft call for 6 months
Corporate ratings B+/Ba3
Facility ratings B+/B1
Recovery ratings 3
Financial covenants None
Arrangers JPM
Admin agent JPM
Px Talk L+450-475/0.75%/99.5-99.75
Sponsor Private
Notes Upsized from $4.095 billion at launch