Academy Sports + Outdoors Announces Pricing of Senior Secured Notes

Academy Sports + Outdoors (Nasdaq: ASO) priced a private offering of $500 million aggregate principal amount of 5.875% senior secured notes due 2031.

Rhea-AI Summary

Academy Sports + Outdoors (Nasdaq: ASO) priced a private offering of $500 million aggregate principal amount of 5.875% senior secured notes due 2031. The offering is expected to close on May 14, 2026, subject to customary closing conditions.

Net proceeds will fund the redemption of outstanding senior secured notes due 2027, repay the term loan facility, pay fees and expenses, and for general corporate purposes. The Notes will be guaranteed by certain subsidiaries and secured by first- and second-priority liens on substantially all personal property.

Positive

• Issued $500 million of 5.875% senior secured notes due 2031
• Use of proceeds to redeem senior secured notes due 2027
• Proceeds will repay outstanding term loan facility on closing

Negative

• Notes secured by first- and second-priority liens on substantially all personal property
• Offering is private to qualified institutional buyers under Rule 144A

Argus May 5 session

+0.46% close to close Open Argus

Details

News Market Reaction – ASO

On May 5, the first trading day after this news, ASO closed 0.46% above the previous close.

Data tracked by StockTitan Argus for the May 5 session.

Market Context

This announcement detailed a capital structure transaction: a private offering of $500 million in 5....

Analysis

This announcement detailed a capital structure transaction: a private offering of $500 million in 5.875% senior secured notes due 2031, intended to redeem existing 2027 notes, repay the term loan, and fund general corporate purposes. Historically, Academy’s updates on growth and strategy sometimes coincided with divergent share moves, underscoring that execution and balance sheet management are key watch points. Investors may want to follow future filings for changes in debt levels, covenants, and overall capital allocation discipline.

Key Figures

Notes principal: $500 million Coupon rate: 5.875% Maturity year: 2031 +2 more

Notes principal

$500 million

Aggregate principal amount of senior secured notes

Coupon rate

5.875%

Interest rate on senior secured notes

Maturity year

2031

Scheduled maturity of new senior secured notes

Expected closing date

May 14, 2026

Expected closing of the notes offering

Existing notes maturity

2027

Redemption of outstanding senior secured notes due 2027

Historical Context

5 past events · Latest: Apr 07

5 events

1. Apr 07

   Analyst Day event

   24h Move

   -3.2%

   Hosting 2026 Analyst Day with long-term strategy presentations.

2. Apr 07

   Sales update

   24h Move

   -3.2%

   Preliminary Q1 update guiding sales up 6%–7%, comps 2%–3%.

3. Apr 02

   Investor conference

   24h Move

   -0.6%

   Participation in J.P. Morgan Retail Roundup investor conference.

4. Mar 31

   Analyst Day notice

   24h Move

   +2.2%

   Announcement of upcoming 2026 Analyst Day on April 7, 2026.

5. Mar 20

   Credit card launch

   24h Move

   -2.0%

   Launch of new myAcademy Rewards credit card and enhanced loyalty program.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

senior secured notes, Rule 144A, Regulation S, qualified institutional buyers, +3 more

7 terms

senior secured notes financial

"aggregate principal amount of 5.875% senior secured notes due 2031"

Senior secured notes are loans a company sells to investors that are backed by specific assets and given first priority for repayment if the company defaults. Because they have a claim on collateral and are paid before other debts, they usually offer lower risk and correspondingly lower interest than unsecured debt; investors use them to judge how safe repayment and recovery of principal might be, like holding a mortgage instead of an unsecured credit card balance.

Rule 144A regulatory

"buyers in reliance on Rule 144A under the Securities Act"

Rule 144A is a regulation that makes it easier for companies to sell private bonds to large investors without going through all the usual rules that apply to public sales. It matters because it helps companies raise money more quickly and privately, often attracting big investors looking for special deals.

Regulation S regulatory

"to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act"

Regulation S is a set of rules that allows companies to sell securities (like shares or bonds) to investors outside the United States without having to follow all U.S. securities laws. It matters because it makes it easier for companies to raise money from international investors while still complying with U.S. regulations.

qualified institutional buyers financial

"sold only to persons reasonably believed to be qualified institutional buyers"

Qualified institutional buyers are large organizations, like big investment firms or banks, that are allowed to buy certain types of investment opportunities not available to everyday investors. Their size and experience matter because it ensures they understand and can handle complex financial deals, making markets more efficient and secure.

asset-based revolving credit facility financial

"personal property securing the Issuer's asset-based revolving credit facility on a first-priority basis"

A loan arrangement where a lender agrees to make funds available up to a set limit that a borrower can draw, repay, and draw again, with the amount available tied to the value of specific assets (like inventory, receivables, or equipment) pledged as collateral. It matters to investors because it provides flexible working capital while limiting risk exposure: the company can fund growth or cover shortfalls quickly, but borrowing capacity can shrink if asset values fall.

first-priority lien financial

"secured by (i) a first-priority lien on substantially all of the Issuer's"

A first-priority lien is a legal claim that gives one lender or creditor the top spot to seize and sell specified assets if a borrower fails to pay. For investors, it matters because being first in line usually means a higher chance of recovering money after a default, lowering risk compared with holders who are behind in the queue — like a person cutting to the front of a checkout line for payment from the same pile of goods.

second-priority lien financial

"and (ii) a second-priority lien on the Issuer's and the guarantors' personal property"

A second-priority lien is a legal claim that a lender or creditor holds on specific assets that sits behind a first-priority lien; if the borrower defaults, the first-priority claimant is paid from the asset sale before the second-priority holder receives anything. For investors this matters because being second in line usually means higher risk of recovering money, which can lead to higher yields but greater potential loss — think of it as standing second in line at a checkout when only limited change is left.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

KATY, Texas, May 4, 2026 /PRNewswire/ -- Academy Sports and Outdoors, Inc. ("Academy") (Nasdaq: ASO) today announced that its wholly-owned subsidiary, Academy, Ltd. (the "Issuer"), priced a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), of $500 million aggregate principal amount of 5.875% senior secured notes due 2031 (the "Notes"). The offering is expected to close on May 14, 2026, subject to customary closing conditions.

The Issuer intends to use the net proceeds from the Notes to fund the redemption of all of its outstanding senior secured notes due 2027 (the "Redemption"), repay all outstanding amounts owing under its term loan facility, pay related fees and expenses, and for general corporate purposes.

The Notes will be guaranteed on a senior secured basis by certain of Academy's subsidiaries that guarantee the Issuer's credit facilities. The Notes and the related guarantees will be secured by (i) a first-priority lien on substantially all of the Issuer's and the guarantors' personal property, and (ii) a second-priority lien on the Issuer's and the guarantors' personal property securing the Issuer's asset-based revolving credit facility on a first-priority basis.

The Notes and the related guarantees have not been and will not be registered under the Securities Act, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. The Notes and the related guarantees are being offered and sold only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act, and to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act.

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, nor shall there be any sale of securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. This press release does not constitute a notice of redemption for the senior secured notes due 2027. This press release is being issued pursuant to and in accordance with Rule 135(c) under the Securities Act.

About Academy Sports + Outdoors
Academy is a leading full-line sporting goods and outdoor recreation retailer in the United States. Originally founded in 1938 as a family business in Texas, Academy has grown to more than 300 stores across 21 states and counting. Academy's mission is to provide "Fun for All" and Academy fulfills this mission with a localized merchandising strategy and value proposition that strongly connects with a broad range of consumers. Academy's product assortment focuses on key categories of outdoor, apparel, sports & recreation and footwear through both leading national brands and a portfolio of private label brands. For more information, visit www.academy.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The statements discussed in this press release that are not purely historical data are forward-looking statements, including, but not limited to, the statements regarding the Notes and the use of proceeds therefrom, including the Redemption and repayment of the term loan facility. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on Academy. The forward-looking statements are subject to various risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Actual results may differ materially from these expectations due to factors that are set forth in Academy's filings with the U.S. Securities and Exchange Commission. Any forward-looking statement in this press release speaks only as of the date of this release. Academy undertakes no obligation to publicly update or review any forward-looking statement, except as may be required by any applicable securities laws.

Media inquiries:
Meredith Klein, Vice President of Communications
346.826.6615
meredith.klein@academy.com

Investor inquires:
Dan Aldridge, Vice President of Investor Relations
832.739.4102
dan.aldridge@academy.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/academy-sports--outdoors-announces-pricing-of-senior-secured-notes-302761855.html

SOURCE Academy Sports + Outdoors

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Academy Sports + Outdoors (ASO) announce on May 4, 2026 about new notes?

Academy priced $500 million of 5.875% senior secured notes due 2031. According to the company, the offering is private, expected to close on May 14, 2026, and is subject to customary closing conditions and exemptions from registration.

How will ASO use the proceeds from the $500 million notes offering?

The company will use net proceeds to redeem senior secured notes due 2027 and repay its term loan. According to the company, remaining funds will cover related fees and general corporate purposes following closing on May 14, 2026.

What collateral and guarantees back the ASO 5.875% notes due 2031?

The Notes are guaranteed by certain subsidiaries and secured by liens on personal property. According to the company, security includes a first-priority lien on substantially all personal property and a second-priority lien related to the asset-based revolver.

Who can purchase the Academy Sports + Outdoors private notes offering (ASO)?

The Notes are offered only to qualified institutional buyers and non-U.S. persons. According to the company, sales rely on Rule 144A for U.S. qualified institutional buyers and Regulation S for non-U.S. purchasers.

When will the ASO notes offering close and what are next steps for shareholders?

The offering is expected to close on May 14, 2026, subject to customary conditions. According to the company, proceeds will fund redemptions and loan repayments; no shareholder action is required regarding the private debt issuance.