Retailer Big 5 Sporting Goods has completed a corporate refinancing agreement with a group of lenders including Wells Fargo Bank, Bank of America, PNC Bank and Union Bank.

The new credit agreement covers a revolving credit facility of up to US$140m, which the company can increase to up to $165m, or up to $200m at the discretion of the lenders.

Big 5 used the proceeds from the initial borrowings to repay all outstanding debts under its prior financing agreement with The CIT Group/Business Credit and a syndicate of other lenders.

“We are pleased with the terms of the new credit facility and believe they reflect the strength of our business model and strong cash flow,” said Barry Emerson, company CFO.

“We feel this facility, along with our healthy financial condition, will provide our business with financial flexibility to support continued long-term growth.”