Smith & Wesson’s wall of guns turns heads at the 2015 National Rifle Association’s annual convention. (Photo: Daniel Terrill)
Smith & Wesson Holding Corporation announced just before markets closed Thursday that the company repaid $100 million it had borrowed from its revolving line of credit, restoring the credit line to the full $175 million.
Smith & Wesson dipped into the credit in December when the company acquired Battenfeld Technologies, Inc. for $130.5 million.
The company also announced that it intends to redeem all of the $100 million principal amount senior notes due 2017 at a redemption price equal to more than 100 percent of the principal amount on June 15.
Upon such redemption, senior note holders would also receive accrued and unpaid interest on the investment to the redemption date.
The company said it intends to use bank borrowings and existing cash balances to fund the redemption of the senior notes.
In April, the Massachusetts-based company raised expectations for fourth quarter results and performance for fiscal year 2015, projecting an 8 percent increase from estimates released the month before. The company said orders throughout its fiscal fourth quarter, which ended April 30, were stronger than originally anticipated.
New expectations put net sales between $175 million and $179 million in the fourth quarter, and between $546 million and $555 million for the full year. At the end of its third quarter, Smith & Wesson reported profits totaling $8.1 million.
The Massachusetts company bought Battenfeld with the intention of expanding its product lines and brands. Battenfeld develops and sells shooting, reloading, gunsmithing, and gun cleaning products under eight brand names that are available at most major sporting goods stores and online retailers
Eventually all existing Smith & Wesson, Military & Police, and Thompson/Center Arms lines of accessories will be housed at Battenfeld’s facility in Columbia, Missouri.
In December, the gun maker said Battenfeld would bring in an additional $55 million in annual revenue.
End-of-day results put Smith & Wesson at $15.13 a share while the NASDAQ also closed on a high note.
The post Smith & Wesson makes $100 million credit payment appeared first on Guns.com.