Rob Curtis reports at Gear Scout that the Remington Outdoor Group (formally known as Freedom Group International) have borrowed $200 million from existing lenders and will use $175 million of that to buy back shares from existing share holders. Remington said …
I am pleased to report that on Thursday, December 12th, the Remington Outdoor Company (ROC), formerly known as Freedom Group (FGI), raised $175 million of add-on, term loan financing from our existing lenders.
The $175 million loan proceeds will be used to repurchase $150 million of shares from exiting investors, with the remaining $25 million in cash being placed on ROC’s balance sheet, which will be used to grow our business with capital equipment, facility and acquisition investments.
The lender will receive a minority stake in the company. Some groups have been pressuring Cerebus Capital, the private equity firm that owns Remington, to sell the company but that has proved hard to do. Cerebus spent years buying up as many gun companies as they could to create a mega firm, which is a lot harder to sell than a bunch of smaller ones.