MADISON, N.C., Feb. 12, 2018 /PRNewswire/ -- Remington Outdoor Company

("Remington" or "the Company") today announced that it has reached a

Restructuring Support Agreement ("RSA") with creditors holding a

majority of the FGI Operating Company, LLC ("FGI OpCo") Term Loans due

in 2019 and 7.875% Senior Secured Notes due in 2020 (the "Third Lien

Notes") (collectively, the "Consenting Creditors"). The RSA provides

for the reduction of approximately $700 million of Remington's

consolidated outstanding indebtedness and the contribution of $145

million of new capital into Remington's operating subsidiaries,

markedly strengthening the Company's consolidated liquidity, balance

sheet, and long-term competitiveness.

The RSA, subject to certain conditions, represents the commitment of

the Company and Consenting Creditors to support a comprehensive

restructuring of Remington's existing funded indebtedness. The balance

sheet restructuring will be effectuated through a pre-packaged joint

plan of reorganization to be filed in the United States Bankruptcy

Court for the District of Delaware in connection with the Company's

filing of voluntary petitions for reorganization under Chapter 11 of

the United States Bankruptcy Code.

Remington's business operations will continue to operate in the normal

course and will not be disrupted by the restructuring process.

Payments to trade partners, employee wages and other benefits, support

for customers, and an ongoing high level of service to consumers will

continue without interruption.

Executive Chairman of Remington, Jim Geisler, commented, "Since its

founding over 200 years ago, Remington has been a uniquely American

company and brand. Our longevity is owed to generations of loyal

customers and hard-working employees who met challenges and delivered

results. Difficult industry conditions make today's agreement prudent.

I am confident this regrouping ensures that Remington will continue as

both a strong company and an indelible part of our national heritage."

Anthony Acitelli, Remington's Chief Executive Officer, stated,

"Importantly, the fundamentals of our core business remain strong.  We

have an outstanding collection of brands and products, the unqualified

support of a vibrant community across the industry, and a deep and

powerful culture. We will emerge from this process with a deleveraged

balance sheet and ample liquidity, positioning Remington to compete

more aggressively and to seize future growth opportunities. We look

forward to serving our customers, our partners throughout the

industry, and our many fine employees, now and long into the future."

Key elements of the RSA and balance sheet restructuring are outlined


-- All existing unsecured and priority claims of Remington Outdoor

Company and each of its subsidiaries (other than funded debt claims)

will be unimpaired, including trade payables.

-- With the consent of a majority of the holders of the Term Loans

(the "Term Loan Lenders") and the Third Lien Notes (the "Third Lien

Noteholders"), Remington Outdoor Company will provide a $45 million

delayed draw first-out first lien term loan (the "First-Out Term

Loan") to FGI OpCo. This facility will roll into a

debtor-in-possession term loan upon the Chapter 11 filing (the "ROC

DIP Term Loan").

-- The Consenting Creditors will provide a $100 million

debtor-in-possession term loan (the "DIP Term Loan") to fund the

Company's Chapter 11 Cases. Upon exiting bankruptcy, the DIP Term Loan

will be converted into an Exit Term Loan.

-- The Company will arrange a new asset-based loan (ABL) facility at

emergence, the proceeds of which will refinance the existing ABL

facility in full.

-- The Term Loan Lenders will equitize their claims and receive 82.5%

of the equity in Reorganized Remington. These lenders will also

receive their Pro Rata share of $2.67 million in cash at emergence.

-- The Third Lien Noteholders will receive (i) 17.5% of the equity in

Reorganized Remington through the equitization of the ROC DIP Term

Loan, and (ii) 4-year warrants for 15% of the equity in Reorganized

Remington at a strike price to be derived at emergence based on a $700

million enterprise value. The Third Lien Noteholders will also receive

their pro rata share of the remaining cash at Remington Outdoor


The RSA may be terminated upon the occurrence of certain events,

including the failure to meet specified milestones relating to the

filing, confirmation, and consummation of the restructuring. There can

be no assurances that the restructuring will be consummated upon the

terms described above.

Remington's legal counsel is Milbank, Tweed, Hadley & McCloy LLP, its

investment banker is Lazard, and its financial advisor is Alvarez &

Marsal Capital Partners. The Term Loan Lenders' legal counsel is

O'Melveny & Myers LLP, and their investment banker is Ducera Partners

LLC. The Third Lien Noteholders' counsel is Willkie Farr & Gallagher

LLP, and their investment banker is Perella Weinberg Partners L.P.

About Remington Outdoor Company

Remington Outdoor Company, headquartered in Madison, N.C., is one of

the world's leading innovator, designer, manufacturer, and marketer of

firearms, ammunition, and related products for the hunting, shooting

sports, law enforcement, and military markets. As one of the largest

manufacturers in the world of firearms and ammunition, we have some of

the most globally recognized brands including Remington, Bushmaster,

DPMS/Panther Arms, Marlin, H&R, Dakota Arms, Parker, AAC, Barnes

Bullets, Storm Lake and Tapco. For more information download the

Remington Outdoor Company Brochure, located on