Business Context and Reporting Period
Company: Smith & Wesson Brands, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: August 15, 2025
Event: Entry into a Material Definitive Agreement (First Amendment to Credit Agreement).
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or total debt levels. It specifically addresses adjustments to financial covenants and calculations within the company's credit facility.
- Credit Facility: Second Amended and Restated Credit Agreement (dated October 3, 2024).
- Administrative Agent: TD Bank, N.A.
- Lead Arrangers: TD Securities (USA) LLC and Regions Bank.
Material Changes and Covenant Adjustments
The First Amendment modifies the calculation of specific financial metrics and covenants as follows:
- Consolidated Funded Indebtedness: Excludes indebtedness of guarantors related to the Guarantee of obligations of the Missouri Lease Tenant until payment or performance responsibilities are discharged.
- Consolidated Fixed Charge Coverage Ratio (One-Time Exclusion): Excludes cash taxes paid by Loan Parties during Fiscal Year 2026 related to amended tax returns for periods May 1, 2022–April 30, 2023, and May 1, 2023–April 30, 2024.
- Minimum Consolidated Fixed Charge Coverage Ratio: Amended for Measurement Periods ending April 30, 2026, and July 31, 2026.
Outlook, Risks, and Management Commentary
The filing contains no forward-looking guidance, management commentary on operational outlook, or discussion of new risks beyond the specific covenant amendments. The document notes that the description of the amendment is qualified by reference to the full text of the First Amendment attached as Exhibit 10.126(d).
Investor Verification Checklist
- Review Exhibit 10.126(d) for the complete terms of the First Amendment to the Credit Agreement.
- Verify the specific revised minimum Consolidated Fixed Charge Coverage Ratio thresholds for the periods ending April 30, 2026, and July 31, 2026.
- Confirm the status of the Missouri Lease Tenant guarantee and the conditions under which it will be included in funded indebtedness.
- Assess the impact of the one-time tax payment exclusion on the company's ability to meet future covenant requirements.