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Gunmaker Remington Files Chapter 11, with DIP Facility from Bank of America

March 26, 2018, 08:00 AM
Filed Under: Specialty Industries

Remington Outdoor Company, a manufacturer of small arms, has filed for Chapter 11 protection from its creditors in U.S. Bankruptcy Court in Delaware. The company listed assets of $100-500 million and liabilities of $100-500 million.

Remington did not release a press statement on the filing, which had been anticipated since February when the company entered into a restructuring agreement with creditors providing for the reduction of approximately $700 million of Remington's consolidated outstanding indebtedness and the contribution of $145 million of new capital into Remington's operating subsidiaries, markedly strengthening the Company's consolidated liquidity, balance sheet, and long-term competitiveness.

The RSA, subject to certain conditions, represented the commitment of the Company and Consenting Creditors to support a comprehensive restructuring of Remington's existing funded indebtedness. The balance sheet restructuring will be effectuated through a pre-packaged joint plan of reorganization to be filed in the United States Bankruptcy Court for the District of Delaware in connection with the Company's filing of voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code.

Anthony Acitelli, Remington's Chief Executive Officer, stated, "Importantly, the fundamentals of our core business remain strong.  We have an outstanding collection of brands and products, the unqualified support of a vibrant community across the industry, and a deep and powerful culture. We will emerge from this process with a deleveraged balance sheet and ample liquidity, positioning Remington to compete more aggressively and to seize future growth opportunities. We look forward to serving our customers, our partners throughout the industry, and our many fine employees, now and long into the future."

According to First Day Motions, financing support includes an ABL DIP facility with Bank of America as administrative agent and Wells Fargo as co-documentation agent.  Collectively, the total post-petition financing will be $338 million, consisting of a $193 million ABL DIP facility, a $100 million term loan DIP facility, and a $45 million ROC DIP facility.

Remington Arms Company was founded in 1816 by Eliphalet Remington in Ilion, New York, as E. Remington and Sons. Remington is America's oldest gun maker and is claimed to be America's oldest factory that still makes its original product. Remington is the largest U.S. producer of shotguns and rifles.  Until 2015, Remington Arms was part of the Freedom Group, which is owned by Cerberus Capital Management. In 2015, the Freedom Group was renamed as Remington Outdoor Company.

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