(Bloomberg) — Magpul Industries Corp., a maker of high-capacity magazines and other rifle accessories, has pulled a $250 million debut bond offering, according to a person with knowledge of the matter.
The company, which is owned by private investment firm Albion River, had planned to use proceeds to pay a special dividend and refinance debt.
In spite of its strong performance during the pandemic, Magpul had received tepid demand from bond investors because of its exposure to the gun industry and the size of the payout, Bloomberg previously reported.
Earlier in the week, Magpul had sweetened the terms of the sale, cutting its size from an originally planned $300 million, increasing the yield to as high as 7% and offering investors a more senior position in the capital structure.
Read more: High-capacity gun magazine maker plans junk-bond debut
According to the initial terms of the deal, Albion planned to take a dividend of around $214 million from Magpul, or more than the amount of equity it put down when it acquired the company in May of last year, according to a separate person with knowledge of the offering.
It ultimately decided to pull the transaction due to market conditions, according to the first person, who asked not to be identified because the sale is private.
A representative for B. Riley Securities, which was leading the bond sale, declined to comment. Albion River did not respond to a message seeking comment.
(Updates with size of dividend in fifth paragraph.)
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