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SPORTSTOWN ANNOUNCES $44 MILLION FINANCING

    ATLANTA, Aug. 13 /PRNewswire/ -- SportsTown, Inc. (NASDAQ: SPTN) announced today that it has consummated, in separate transactions, a $9 million private placement of convertible subordinated debt and a $35 million bank revolving credit agreement.
    Thomas K. Haas, chairman and chief executive officer, said that the proceeds of the combined transactions would enable the company to accelerate its expansion strategy, provide for its working capital needs, and diversify its capital sources.  He stated that SportsTown intends to open an additional 18 sporting goods mega-stores over the next 18 months for a total of 38 stores.
    The convertible debt was sold to Electra Investment Trust PLC, a London-based institutional investor and its affiliates, through Prudential Securities as placement agent.  Key terms of the transaction call for SportsTown to issue $9 million of 8-1/4 percent convertible subordinated notes due eight years from the issuance date.  The notes will be convertible at any time at the option of the holder into shares of SportsTown common stock at a conversion price to be set between $8.25 and $9.25, based upon the prevailing stock price during a 30-day period ending May 5, 1994.  Holders of the notes will have the right to nominate one director to the company's board.
    The $35 million bank revolving credit facility is a three-year agreement with The CIT Group/Business Credit, Inc., which replaces a $15 million revolver with another bank.
    SportsTown, Inc., headquartered in Atlanta, operates 20 sporting goods mega-stores in the Southeast and Southwest.  The company's mega- stores range in size from 42,000 to 68,000 square feet and offer a wide variety of sports equipment, athletic footwear, and leisure apparel.
    -0-             08/13/93
    CONTACT:  Thomas K. Haas, chairman and CEO, or Clyde S. Fossum, chief financial officer of SportsTown, 404-246-5300
    (SPTN) CO:  SPORTSTOWN, INC. IN:  REA SU:  FNC ST:  GA


-- AT004 -- X550 08/13/93
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Publication:PR Newswire
Date:Aug 13, 1993
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