Hanesbrands Inc.
(336) 519-8080
news
release
FOR IMMEDIATE RELEASE
News
Media, contact:
Matt
Hall, (336) 519-3386
Analysts
and Investors, contact: Brian
Lantz, (336) 519-7130
HANESBRANDS INC. COMPLETES LONG-TERM DEBT REFINANCING TO TAKE ADVANTAGE OF FAVORABLE FIXED INTEREST RATES
The company issued $1 billion of 10-year 6.375
percent senior unsecured notes due Dec. 15, 2020. Standard & Poor’s Ratings Services assigned
a BB- rating to the notes, upgraded all other company notes to a BB- rating and
upgraded the company’s outlook to stable. Hanesbrands used proceeds from the new 10-year
notes to retire early its $691 million floating-rate term loan under its credit
facility, reduce its revolving credit facility balance, and pay related fees
and expenses.
With the refinancing, Hanesbrands has favorable
fixed interest rates and long maturities on 75 percent of its approximately $2
billion of bond debt. In addition to the
new $1 billion senior notes, the company has $500 million of 8 percent senior
notes due in 2016 and $491 million in floating-rate notes due in 2014.
In the fourth quarter, Hanesbrands expects to incur primarily noncash charges for early retirement of its term loan credit facility and other related expenses of approximately $22 million, or $0.20 earnings per share. These charges reduce Hanesbrands’ expectations for 2010 EPS by the same amount to a range of $2.07 to $2.12. All other expectations communicated on the company’s third-quarter earnings conference call held on Oct. 27, 2010, remain unchanged.
“We took advantage of the robust debt market
to create an even stronger capital structure that supports our continued growth
momentum,” said E. Lee Wyatt, Hanesbrands executive vice president and chief
financial officer. “In
addition, our new structure gives us tremendous liquidity and flexibility to
support our priorities for cash flow: investing in our business, paying down
debt, funding acquisitions, and returning cash to shareholders.”
The notes were offered in the United States
to qualified institutional buyers pursuant to Rule 144A under the Securities
Act of 1933, as amended (the “Securities Act”), and to non-U.S. persons in
reliance on Regulation S under the Securities Act. The notes have not been
registered under the Securities Act and may not be offered or sold in the
This press release shall not constitute an
offer to sell or the solicitation of an offer to buy any of the notes, nor
shall there be any sale of the notes in any state or jurisdiction in which such
offer, solicitation, or sale is unlawful.
Cautionary
Statement Concerning Forward-Looking Statements
Statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including those regarding our long-term goals, trends associated with our business and our recently completed debt refinancing. These forward-looking statements are made only as of the date of this press release and are based on our current intent, beliefs, plans and expectations. They involve risks and uncertainties that could cause actual future results, performance or developments to differ materially from those described in or implied by such forward-looking statements. These risks and uncertainties include the following: our ability to successfully manage social, political, economic, legal and other conditions affecting our foreign operations and supply-chain sources; the impact of natural disasters; the impact of dramatic changes in the volatile market price of cotton and increases in prices of other materials used in our products; the impact of increases in prices of oil-related materials and other costs such as energy and utility costs; our ability to effectively manage our inventory and reduce inventory reserves; our ability to continue to effectively distribute our products through our distribution network as we continue to consolidate our distribution network; our ability to optimize our global supply chain; current economic conditions; consumer spending levels; the risk of inflation or deflation; financial difficulties experienced by, or loss of or reduction in sales to, any of our top customers or groups of customers; gains and losses in the shelf space that our customers devote to our products; the highly competitive and evolving nature of the industry in which we compete; our ability to keep pace with changing consumer preferences; our debt and debt service requirements that restrict our operating and financial flexibility and impose interest and financing costs; the financial ratios that our debt instruments require us to maintain; future financial performance, including availability, terms and deployment of capital; our ability to comply with environmental and occupational health and safety laws and regulations; costs and adverse publicity from violations of labor or environmental laws by us or our suppliers; and other risks identified from time to time in our most recent Securities and Exchange Commission reports, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, registration statements, press releases and other communications. Except as required by law, the company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.
Hanesbrands
Inc.
Hanesbrands Inc. is a leading marketer of everyday basic
apparel under some of the world’s strongest apparel brands, including Hanes,
Champion, Playtex,
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