The new loan is priced at SOFR+ 700bps, according to a source.

Pure Fishing’s announcement came shortly after 9fin reported that the company is nearing a deal with a group of private credit lenders to address its upcoming debt wall. 

The Sycamore Partners-backed company has been seeking a new loan, with proceeds to repay its roughly $719m first lien loan due December 2025, sources said.

Aside from the first lien loan, Pure Fishing also has a real estate-backed loan, a $255m second lien loan due December 2026, and a $50m promissory note due 2027.

Pure Fishing has been hit hard by its high interest burden and pullback in consumer spending. The company's adjusted Ebitda plunged 60% year-over-year in fiscal 2023, according to a Moody's note in April. 

Sycamore has been supportive in providing the company more breathing room. In March, the sponsor agreed to convert cash interest to PIK on the property loan and promissory notes. 

Also, the sponsor recycled cash interest tied to first lien and second lien term loans that it owns into the real property loan, according to Moody’s. Sycamore owns about a quarter of the first lien loan — which it bought at a steep discount during 2023— and the entire second lien loan due December 2026.

As fishing trips increase, Moody’s expected Pure Fishing to generate roughly $20m of cash flow in fiscal 2024, helped by its cash interest relief and improved earnings.

Based in South Carolina, Pure Fishing sells fishing equipment products through brands such as Berkley, Abu Garcia, and Shakespeare. The company went through a restructuring in December 2023, when it extended the maturity of its real property loan to October 2025 from October 2024, and raised incremental debt from Sycamore.

A representative at Pure Fishing did not respond to requests for comment. Sycamore declined to comment.

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