Despite depressed sales related to the recent softness in the gun business, Moody’s affirmed Bass Pro’s Ba3 corporate rating (speculative) and B1 rating (highly speculative) senior secured debt rating with a positive outlook. Bass pro is planning to increase its existing term loan by $800 million, using the proceeds to redeem 63% of its $1.3 billion in preferred equity as well as make a shareholder distribution that wasn’t detailed. The $5.0 billion merger was financed with $1.8 billion from Goldman Sachs, a $3.37 billion senior loan and another $600 million from Pamplona.

The positive outlook is the result of improving margins ... Log in to view full article.