Alliant Techsystems Gets $900 Million Commitment to Buy Bushnell
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.
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