EL SEGUNDO, Calif., Feb. 25, 2021 (GLOBE NEWSWIRE) Big 5 Sporting Goods Corporation (Nasdaq: BGFV) (the “Company,” “we,” “our,” “us,” “Big 5”), a leading sporting goods retailer, announced today that it has entered into a new loan agreement with Bank of America, N. A., as administrative agent and lender (the “Loan Agreement”).

The Loan Agreement has a five-year term which matures in February 2026 and provides for a secured revolving credit facility with aggregate committed availability of up to $150 million. The Company may request additional increases in aggregate availability, which the lender has the option to provide, up to $200 million.   Loans under the new credit facility will bear interest based on LIBO rates or a specified base rate (generally Bank of America’s prime rate), plus a margin that is determined based on the remaining availability under the credit line. The margin on LIBO rate loans ranges from 1.375% to 1.50% and the margin on base rate loans ranges from 0.375% to 0.50%, subject to interest rate floors of zero. The commitment fee assessed on the unused portion of the credit facility is 0.20% per annum.
        
Barry Emerson, the Company’s Chief Financial Officer, stated, “We are pleased to put a new credit facility in place on such favorable terms. We believe this facility underscores the strength of our financial condition, as we remain debt-free with a cash balance of $64.7 million as of the end of fiscal 2020.   We appreciate the support of Bank of America, as this multi-year facility is expected to help provide the financial flexibility to support our business through the current dynamic retail environment and over the long-term.”

The Loan Agreement replaces the Company’s prior financing arrangement. The Company will be filing with the Securities and Exchange Commission a Current Report on Form 8-K, which will include additional details about the Loan Agreement.

About Big 5 Sporting Goods Corporation
Big 5 is a leading sporting goods retailer in the western United States, operating 430 stores under the “Big 5 Sporting Goods” name as of the fiscal quarter ended January 3, 2021. Big 5 provides a full-line product offering in a traditional sporting goods store format that averages 11,000 square feet. Big 5’s product mix includes athletic shoes, apparel and accessories, as well as a broad selection of outdoor and athletic equipment for team sports, fitness, camping, hunting, fishing, home recreation, tennis, golf, and winter and summer recreation.