Alliant Techsystems Inc. (ATK), the world’s largest ammunition maker, obtained a $900 million financing commitment to support its acquisition of Bushnell Group Holdings Inc. from MidOcean Partners LP.
Bank of America Corp. is providing the senior secured loans, the Arlington, Virginia-based company known as ATK said during a teleconference to discuss the acquisition today. The company may refinance existing borrowings, including extending maturities into the five- and seven-year range, Neal Cohen, chief financial officer, said on the call.
Private-equity firm MidOcean is selling Bushnell Group, which it obtained in 2007, to ATK, according to a statement today distributed by Business Wire. Under terms of the agreement, ATK will pay about $985 million in cash, CFO Cohen said during the call.
ATK had about $1.05 billion of long-term debt as of Dec. 30, according to a regulatory filing. The borrowings include a $360 million term loan due in 2015 and a $200 million term piece that expires in 2017, as well as $350 million in 6.875 percent notes due in 2020 and $199.5 million of 3 percent convertible obligations maturing in 2024, the filing shows.
Bushnell sells sporting products including trail cameras, binoculars, hunting and shooting accessories and riflescopes.
To contact the editor responsible for this story: Faris Khan at firstname.lastname@example.org