Home / Knowledge / News / Apparel/Garments / HanesBrands to reduce borrowing costs of credit facility
HanesBrands to reduce borrowing costs of credit facility
17
Jul '12
HanesBrands announced that it has negotiated an amendment to its revolving loan facility credit agreement that reduces borrowing costs and extends the revolver’s maturity date.

The amendment, effective immediately, reduces the company’s revolving loan facility borrowing rate by 100 basis points, reduces its unused revolver fee by 15 basis points, and extends the revolver’s maturity initially to September 2016 and could eventually extend it to July 2017. Under the new terms, HanesBrands expects to save an annualized $2 million in revolver interest expense. In 2012, overall interest expense is expected to be $15 million lower than last year, resulting primarily from reduced long-term debt.

“Our banks have recognized our strengthened credit profile as a result of our operating performance and continued improvement of our balance sheet as we use free cash flow to deleverage and reduce debt,” said Hanes Chief Financial Officer Richard D. Moss. “We took advantage of our performance and improvement to reduce our borrowing costs.”

Under the terms of the amendment, Hanes’ revolving loan facility borrowing rate at its current leverage ratio is LIBOR plus 225 basis points, down from 325 basis points, and its unused revolver fee is 35 basis points, down from 50 basis points. The borrowing rate would continue to decrease if the company’s leverage ratio decreases. The revolver maturity has been extended to September 2016 with the provision that it will extend to July 2017 if the company redeems its 8 percent notes as planned next year.

Hanes has committed to using free cash flow in 2012 and 2013 to significantly reduce long-term debt and leverage. As previously announced, Hanes redeemed $150 million of Floating Rate Senior Notes due 2014 on Thursday, July 12, and continues to expect to redeem the remaining $147 million of these notes by the end of 2012.

In 2013, the company’s goal is to pay off its $500 million of 8 percent notes, which would reduce total bond debt to approximately $1 billion. That also would further reduce the revolver borrowing rate as a result of an improved leverage ratio and extend the revolver maturity until July 2017.

HanesBrands


Must ReadView All

US merchandise trade with India, 2012–16; Courtesy: USITC

Textiles | On 27th Jul 2017

India becomes US’ 9th largest trading partner in 2016

In 2016, India became the United States’ 9th-largest single-country...

Textiles | On 27th Jul 2017

GST will lead to further increase of MMF prices

The Goods & Services Tax (GST) rolled out on July 1, 2017 is not...

Textiles | On 27th Jul 2017

Global yarn production improved 30% q-o-q in Q1: ITMF

In the first quarter of 2017, global yarn production rose by almost...

Interviews View All

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X