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Gildan closes 5-year $800 mn amended bank credit facility
01 Jul '11
2 min read
Gildan Activewear Inc announced that it has increased its existing unsecured revolving bank credit facility to US$800 million from US$400 million and has extended the maturity date to June 2016 from June 2013.
As previously disclosed, the Company utilized approximately US$250 million of its bank facility to finance its acquisition of Gold Toe Moretz Holdings Corp. in April 2011. The increase in the amount of the facility is intended to provide the Company with continuing financing flexibility, primarily to be able to respond to potential future acquisition opportunities which complement its organic growth strategy.
The interest rate for drawn amounts under the facility is based on the underlying banker's acceptance or LIBOR rate plus 125 to 200 basis points depending on Gildan's debt leverage. Based on the current LIBOR rate, this translates into a floating interest rate of 1.45%. However, the Company has entered into a series of floating-to-fixed interest rate swaps totaling US$100 million for a term of 5 years. The interest rate on the swapped debt is fixed at 3.12%.
The transaction was led by BMO Capital Markets ("BMO") and Canadian Imperial Bank of Commerce ("CIBC") as Co-Lead Arrangers. Joint Book Runners were BMO, CIBC and JPMorgan Chase Bank. The banking syndicate also comprises TD Bank Financial Group, Bank of America, N.A., Bank of Nova Scotia, Royal Bank of Canada, HSBC Bank Canada and BNP Paribas Bank.
As previously disclosed, the Company utilized approximately US$250 million of its bank facility to finance its acquisition of Gold Toe Moretz Holdings Corp. in April 2011. The increase in the amount of the facility is intended to provide the Company with continuing financing flexibility, primarily to be able to respond to potential future acquisition opportunities which complement its organic growth strategy.
The interest rate for drawn amounts under the facility is based on the underlying banker's acceptance or LIBOR rate plus 125 to 200 basis points depending on Gildan's debt leverage. Based on the current LIBOR rate, this translates into a floating interest rate of 1.45%. However, the Company has entered into a series of floating-to-fixed interest rate swaps totaling US$100 million for a term of 5 years. The interest rate on the swapped debt is fixed at 3.12%.
The transaction was led by BMO Capital Markets ("BMO") and Canadian Imperial Bank of Commerce ("CIBC") as Co-Lead Arrangers. Joint Book Runners were BMO, CIBC and JPMorgan Chase Bank. The banking syndicate also comprises TD Bank Financial Group, Bank of America, N.A., Bank of Nova Scotia, Royal Bank of Canada, HSBC Bank Canada and BNP Paribas Bank.
Gildan Activewear Inc
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