Fear & Loading: Financial Moves at Vista Outdoor

by
posted on December 31, 2018
vista.jpg

On Dec. 21, the Global Legal Chronicle reported Vista Outdoor—parent company of Federal Premium, CCI, Savage Arms, RCBS, Bushnell and many others in the firearm industry—recently secured a $40 million, second-lien term loan from Great American Capital Partners Finance. The news broke exactly a month after ABL (Asset-Based Lending) Adviser ran a story that detailed Vista entering, “…into new credit facilities consisting of a (a) $450,000,000 senior secured asset-based revolving credit facility, comprised of $20,000,000 in first-in, last-out (FILO) revolving credit commitments and $430,000,000 in non-FILO revolving credit commitments, (b) $109,343,000 senior secured asset-based term loan facility and (c) $40,000,000 junior secured term loan facility.” Maturity date of the latter agreement is Nov. 18, 2023.

The developments should have little or no effect on firearm enthusiasts. Vista Outdoor is publicly traded on the New York Stock Exchange, which makes the news important to executives and investors in the financial sector. It does, however, indicate the experts aren’t letting the “new norm” reflected in NICS background checks dampen their long-term economic forecast for the gun industry.  

Zacks Investment research predicted earlier this month, for example, that Vista Outdoor will report $505.44 million in sales for the current quarter, down 13 percent from the same period in 2017. Only two days later, the Fairfield Current detailed Laurion Capital Management’s purchase of Vista stock worth $196,000 (10,953 shares). The story also detailed other financial funds buying or adding to their holdings in the company, with Bank of Montreal Can increasing its investment by 262.4 percent, ClariVest Asset Management put in another $224,000 during the second quarter and United Services Automobile Association bought in during the third quarter with a new stake valued at $234,000).

November’s NICS checks indicate gun sales were down nearly 10 percent compared to the same month in 2017, although the figures show some interesting trends that have attracted the attention of investors.

 

 

 

Latest

Kimber Kds9c Rifleman Review 1
Kimber Kds9c Rifleman Review 1

Rifleman Review: Kimber KDS9c

Kimber's KDS9c is one of only a few double-stack, M1911-style handguns on the market that are expressly designed for concealed carry in mind.

New For 2025: CVA Optima V3

CVA's mid-point Optima muzzleloader got a refresh in 2025, and this third-generation model offers a number of additional features while still remaining affordable.

From Paper Cartridge To PMAG: 250 Years Of U.S. Infantry Ammunition

Any survey of military firearms isn’t complete without also discussing the development of ammunition across this past quarter-millennium. From a conceptual standpoint, very little has changed.

Review: IWI Carmel

Initially introduced in 2019 to the international military market in a select-fire format, the IWI Carmel is a modular, durable and thoroughly modern sporting rifle.

Ruger Reaches New Milestone In Support Of Youth Shooting Sports

Sturm, Ruger & Co., Inc. became the first Blue Diamond level sponsor of the Scholastic Shooting Sports Foundation (SSSF) in 2024 by supporting the youth shooting sports program with more than $75,000 a year.

KelTec’s PR57: Thinking Outside The (Detachable) Box

KelTec has brought the stripper clip back with the thoroughly unconventional PR57—a carry pistol with an uncommon chambering, an unusual action and no box magazine.

Interests



Get the best of American Rifleman delivered to your inbox.