Academy Sports & Outdoors, Inc. (NASDAQ: ASO) is offering $500 million of senior secured notes due 2031 through its wholly‑owned subsidiary, Academy, Ltd. The new notes will be used to redeem all outstanding senior secured notes due 2027, repay the company’s term loan facility, cover related fees, and fund general corporate purposes.
The notes are structured as senior secured debt, providing a first‑priority lien on the issuer’s and guarantors’ personal property and a second‑priority lien on the same assets that secure the company’s asset‑based revolving credit facility. The offering is being made to qualified institutional buyers under Rule 144A and to non‑U.S. persons under Regulation S, and is exempt from registration under the Securities Act.
The refinancing replaces the 6.000 % senior secured notes due 2027, which were issued on November 6 2020, with longer‑term debt that extends the maturity to 2031. By doing so, Academy reduces near‑term refinancing risk and potentially lowers its overall interest expense, while also repaying the term loan facility and covering issuance costs. The proceeds are also earmarked for general corporate purposes, giving the company flexibility to invest in store expansion, technology upgrades, and other strategic initiatives.
Academy’s balance sheet is already strong, with total debt of $1.89 billion and a debt‑to‑equity ratio of 0.87 as of May 4 2026. Moody’s affirmed the company’s corporate family rating at Ba2 with a stable outlook, and the company has a $1.0 billion asset‑based revolving credit facility that expires in March 2029. The new notes therefore support a robust capital structure and provide additional liquidity for future growth.
The conditional redemption of the 2027 notes is scheduled for May 14 2026. The private offering is exempt from registration, allowing Academy to complete the transaction efficiently while maintaining regulatory compliance.
By extending the maturity of its senior debt and reducing near‑term refinancing risk, Academy positions itself for continued expansion and operational flexibility. The use of proceeds for general corporate purposes signals the company’s readiness to invest in store expansion, technology upgrades, and other strategic priorities, reinforcing its long‑term growth strategy.
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