Smith & Wesson Holding Corporation Announces Debt Exchange and Purchase, and $100.0 Million Stock Repurchase Authorization

 Smith & Wesson Holding Corporation Announces Debt Exchange and Purchase, and
                $100.0 Million Stock Repurchase Authorization

PR Newswire

SPRINGFIELD, Mass., June 13, 2013

SPRINGFIELD, Mass., June 13, 2013 /PRNewswire/ --Smith & Wesson Holding
Corporation (NASDAQ Global Select Market: SWHC), a leader in firearm
manufacturing and design, today announced that it has entered into agreements
to sell to institutional investors $75.0 million aggregate principal amount of
newly issued 5.875% Senior Notes due 2017 ("New Notes"). The New Notes will be
issued in exchange for approximately $42.8 million aggregate principal amount
of the company's 9.50% Senior Notes due 2016 from existing holders of such
notes and the purchase by certain of such holders of additional New Notes for
cash. This transaction will result in net cash to the company totaling
approximately $25.0 million. The company anticipates that the settlement of
the sale of the New Notes will take place on or about June 17, 2013, subject
to customary closing conditions.

The company also announced that its Board of Directors has approved the
repurchase of up to $100.0 million of the company's outstanding common stock,
including the repurchase for cash of up to $75.0 million of common stock by
way of a fixed-price issuer tender offer, with the remaining authorized
balance to be repurchased in open market or privately negotiated transactions.
The amount and timing of any open market repurchases or privately negotiated
transactions will depend on a number of factors, including price, trading
volume, general market conditions, legal requirements, and other factors. Any
shares of common stock repurchased under the authorization will be held as
treasury stock but not outstanding shares of the company's common stock. In
December 2012, the company announced that its Board of Directors approved a
program to repurchase up to $35.0 million of the company's outstanding shares
of common stock and the company subsequently repurchased 2.1 million shares
for $20.0 million, utilizing cash on hand. The $100.0 million repurchase
program announced today replaces the remaining $15.0 million authorized in
December 2012.

James Debney, President and Chief Executive Officer of Smith & Wesson, said,
"The successful execution of our growth strategy and strong balance sheet have
allowed us to take steps to optimize our capital structure. With fiscal year
2013 results that exceeded guidance and $100.5 million cash on hand at the end
of the fiscal year, we will recapitalize our existing debt on highly favorable
terms, providing a capital structure that allows us to analyze opportunities
for strategic investments. We believe that investing in our own company is
presently one of our greatest opportunities. Thus, our Board of Directors has
established a major stock buyback program, which, depending on the stock price
and the number of shares purchased, could reduce our outstanding shares of
common stock by approximately 15%. The debt exchange and the stock buyback
program together are expected to be accretive, thereby increasing stockholder
value while giving us financial flexibility to be strategically
opportunistic."

Under the terms of the proposed tender offer, stockholders will be invited to
tender some or all of their shares at a price per share of $10.00. The
company has indicated that none of the company's executive officers or
directors will tender any portion of their shares in the tender offer. The
company will use reasonable efforts to commence the tender offer on or around
June 17, 2013 and will expire 20 business days from its commencement, unless
extended or terminated in accordance with the terms and conditions of the
tender offer. Tenders of shares must be made on or prior to the expiration of
the tender offer and may be withdrawn at any time on or prior to the
expiration date of the tender offer.

This announcement is neither an offer to purchase nor a solicitation of an
offer to sell securities. The tender offer described in this press release has
not commenced. At the time the tender offer is commenced, Smith & Wesson
Holding Corporation will file a tender offer statement on Schedule TO with
U.S. Securities and Exchange Commission (the "SEC"). The tender offer
statement (including an offer to purchase, a related letter of transmittal,
and other offer documents) will contain important information that should be
read carefully before any decision is made with respect to the tender offer.
Those materials will be made available to Smith & Wesson Holding Corporation
stockholders at no expense to them. In addition, all of those materials, and
all other offer documents filed with the SEC, will be available at no charge
on the SEC's website at www.sec.gov. Additionally, the stockholders will be
able to obtain the offer documents at no charge by contacting the information
agent, Innisfree M&A Incorporated, toll-free at (888) 750-5834 (banks and
brokers may call collect at (212) 750-5833). Stockholders are urged to
carefully read these materials prior to making any decision with respect to
the tender offer. Cowen and Company, LLC will serve as dealer manager for the
tender offer.

The New Notes have been offered only to "qualified institutional buyers" in
the United States as defined in Rule 144A under the Securities Act of 1933, as
amended (the "Securities Act"), and to non-U.S. persons pursuant to Regulation
S under the Securities Act. The New Notes will not be registered under the
Securities Act or any state securities laws and may not be offered or sold in
the United States absent registration or an applicable exemption from the
registration requirements of the Securities Act and applicable state
securities laws.

The announcement of the private placement of the New Notes does not constitute
an offer to sell, or a solicitation of an offer to buy, any security and shall
not constitute an offer, solicitation, or sale in any jurisdiction in which
such offering, solicitation, or sale would be unlawful.

About Smith & Wesson
Smith & Wesson Holding Corporation (NASDAQ Global Select: SWHC) is a
U.S.-based leader in firearm manufacturing and design, delivering a broad
portfolio of quality firearms, related products, and training to the global
military, law enforcement, and consumer markets. The company's brands include
Smith & Wesson®, M&P® and Thompson/Center Arms™. Smith & Wesson facilities are
located in Massachusetts and Maine. For more information on Smith & Wesson,
log on to www.smith-wesson.com.

Safe Harbor Statement
This press release contains forward-looking statements. Forward-looking
statements are identifiable by words or phrases such as "anticipates,"
"intends," "expects," "believes" and "will," and similar words and phrases.
Certain statements contained in this press release may be deemed to be
forward-looking statements under federal securities laws, and we intend that
such forward-looking statements be subject to the safe-harbor created
thereby. Such forward-looking statements include the company's assessment of
the successful execution of its growth strategy and strong balance sheet; the
company's view of the terms of the recapitalization of its existing debt; the
company's view that it will be able to analyze opportunities for strategic
investments; the company's view that buying back stock is presently one of its
greatest opportunities; and the company's view of the potential reduction of
its outstanding shares. We caution that these statements are qualified by
important factors that could cause actual results to differ materially from
those reflected by such forward-looking statements. Such factors include,
among others, the uses of proceeds from the sale of the New Notes. Additional
information about the risk factors to which we are exposed and other factors
that may adversely affect these forward-looking statements is contained in our
reports and filings with the Securities and Exchange Commission, including our
Annual Report on Form 10-K for the fiscal year ended April 30, 2012. Investors
should not place undue reliance on forward-looking statements as predictions
of future results. The company undertakes no obligation to update or revise
any forward-looking statements to reflect developments or information obtained
after the date of this press release except as otherwise required by law.

Contact: Liz Sharp, VP Investor Relations
Smith & Wesson Holding Corp.
(413) 747-3304
lsharp@smith-wesson.com

SOURCE Smith & Wesson

Website: http://www.smith-wesson.com
 
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