Smith & Wesson Holding Corporation Completes $75 Million Unsecured Credit Facility

  Smith & Wesson Holding Corporation Completes $75 Million Unsecured Credit
                                   Facility

PR Newswire

SPRINGFIELD, Mass., Aug. 19, 2013

SPRINGFIELD, Mass., Aug. 19, 2013 /PRNewswire/ --Smith & Wesson Holding
Corporation (NASDAQ Global Select Market: SWHC), a leader in firearm
manufacturing and design, today announced that it has successfully completed a
new $75 million unsecured revolving credit facility (the "Credit Facility")
that is expandable under an accordion feature that allows, in certain
circumstances, for the company to increase the size of the Credit Facility in
$25 million increments up to a maximum loan of $175 million. The new Credit
Facility replaces the company's existing secured $55 million credit facility
that was set to expire in December 2014. Proceeds will be used for general
corporate purposes.

Jeffrey D. Buchanan, Smith & Wesson Executive Vice President and Chief
Financial Officer, said, "The fact that the new Credit Facility is expandable
and unsecured reflects a vote of confidence in the direction and strategies of
our company by TD Bank and the other banking participants. This is the first
time in the company's history that we have achieved credit agreement terms
comparable to what investment grade companies receive in the current market.
This represents another step in our commitment to developing flexibility
within our capital structure." 

Compared with the prior credit facility, the new Credit Facility provides
increased borrowing capacity and more favorable terms and conditions,
including a maturity date approximately two years beyond the expiration of the
prior credit facility, improved financial covenants, and a reduction of
approximately 75 basis points on average across the pricing grid. Loans under
the Credit Facility will bear interest, at the company's option, at a rate
equal to the LIBOR rate, plus an applicable margin, or the prime lending rate,
plus an applicable margin, subject to adjustment based upon the company's
consolidated leverage ratio. Based on current rates, should the company
borrow against the credit facility, the interest rate would be approximately
1.70% for LIBOR rate loans and 3.75% for prime rate loans.

The Revolver was arranged by TD Securities (USA) LLC as sole lead arranger and
bookrunnner and TD Bank, N.A. as administrative agent. TD Bank, BB&T and
People's United Bank served as participants in the Credit Facility.

About Smith & Wesson
Smith & Wesson Holding Corporation (NASDAQ Global Select Market: 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 statements regarding our
expectation that the proceeds of the new Credit Facility will be used for
general corporate purposes, our belief that the fact that the new Credit
Facility is expandable and unsecured reflects a vote of confidence in the
direction and strategies of our company by TD Bank and the other banking
participants, our belief that this is the first time in the company's history
that we have achieved credit agreement terms comparable to what investment
grade companies receive in the current market, and our belief that this
represents another step in our commitment to developing flexibility within our
capital structure. 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. 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 SEC, including our Annual Report on Form 10-K for the
fiscal year ended April 30, 2013. 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 Holding Corporation

Website: http://www.smith-wesson.com
 
Press spacebar to pause and continue. Press esc to stop.