Sport Supply Group Retires Convertible Debentures
December 01 2009 - 8:30AM
Business Wire
Sport Supply Group, Inc. (NASDAQ:RBI) today announced it has
retired all of its outstanding 5.75% subordinated convertible
debentures. The Company had $28.9 Million in outstanding
convertible debentures that were repaid today via cash on-hand and
borrowings underneath the Company’s $40.0 Million revolving credit
facility. The borrowings under the Company’s credit facility bear
interest, subject to consolidated leverage ratios, at LIBOR plus
1.25%. Based upon today’s LIBOR rate, the interest rate on
borrowings would approximate 1.49% per annum. The Company estimates
that it will save approximately $2.1 Million in interest expense
for the 12 months ending June 30, 2010 as compared to the 12 months
ended June 30, 2009 as a result of these lower interest rates and
reduced borrowings.
The Company will have approximately $11.0 to $14.0 Million in
debt remaining under its revolving credit facility at the end of
its second fiscal quarter ending December 31, 2009, which, given
current cash flow trends (and barring other potential uses of cash
such as acquisitions, internal expansion and / or stock
repurchases), will likely be repaid within the next 6-12
months.
Adam Blumenfeld, Chairman and Chief Executive Officer, stated:
“In December 2006, Sport Supply Group had $85.6 Million in
outstanding debt. We are proud to have reduced our indebtedness by
more than $70 Million during the last 36 months, largely through
operating cash flow. This speaks to the resiliency of Sport
Supply’s business model during the most challenging of economic
times. We believe there are a number of strategic opportunities
within our industry and we intend to put the strength of our
balance sheet to use for the benefit of all shareholders.”
The Company stated, as a result of retiring its convertible
debentures, the Company’s diluted weighted average shares
outstanding will decrease from 14.53 million shares for the quarter
ending September 30, 2009 to approximately 12.55 million shares for
its second fiscal quarter ending December 31, 2009.
Sport Supply Group, Inc. is the nation's leading marketer,
manufacturer and distributor of sporting goods and branded team
uniforms to the institutional and team sports market. The Company
markets via 3 million direct catalogs, a 40 person telesales team,
more than 200 direct sales professionals, 60 Platinum
Re-distribution partners and a family of company-controlled
websites.
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements include statements relating
to Sport Supply Group’s anticipated financial performance, business
prospects, new developments and similar matters, and/or statements
preceded by, followed by or that include the words “believes,”
“could,” “expects,” “likely”, “anticipates,” “estimates,”
“intends,” “plans,” or similar expressions. These forward-looking
statements are based on management’s current expectations and
assumptions, which are inherently subject to uncertainties, risks
and changes in circumstances that are difficult to predict. Actual
results may differ materially from those suggested by the
forward-looking statements due to a variety of factors, including
changes in business, political, and economic conditions due to the
threat of future terrorist activity or otherwise, actions and
initiatives by current and potential competitors, and certain other
additional factors described in Sport Supply Group’s filings with
the Securities and Exchange Commission. Other unknown or
unpredictable factors also could have material adverse effects on
Sport Supply Group’s future results, performance or achievements.
In light of these risks, uncertainties, assumptions and factors,
the forward-looking events discussed in this press release may not
occur. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date stated,
or if no date is stated, as of the date of this press release.
Sport Supply Group is not under any obligation and does not intend
to make publicly available any update or other revisions to any of
the forward-looking statements contained in this press release to
reflect circumstances existing after the date of this press release
or to reflect the occurrence of future events even if experience or
future events make it clear that any expected results expressed or
implied by those forward-looking statements will not be
realized.
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