The redemption of the bonds on Dec. 27 will reduce the company’s total bond debt to $1.25 billion, and the company’s year-end long-term debt is expected to be less than 2.5 times EBITDA, a significant achievement in leverage reduction since the company’s 2006 spinoff.
By using a make-whole provision that is part of the bond indenture, the company has determined that it can prepay its 8 percent notes now with no additional interest and call premiums than if it waited to retire the bonds in December 2013.
“We have a substantial amount of cash on hand now as a result of strong cash flow in 2012, we are committed to reducing our debt, and we have determined there is no benefit or need to wait to start prepaying our 8 percent notes,” Hanes Chairman and Chief Executive Officer Richard A. Noll said. “With this debt payment, the era of being a highly leveraged company is a thing of the past.”
The company expects to take a pretax charge of approximately $34 million in the fourth quarter of 2012 for bond prepayment expenses due through Dec. 15, 2013, and acceleration of noncash unamortized debt costs.
Textiles | On 22nd Oct 2016
The Central government is likely to extend the recently approved Rs...
Apparel/Garments | On 22nd Oct 2016
Reebok, a pioneer in the sporting goods industry, has brought sneaker ...
Sedo Treepoint GmbH
We see a higher demand in colour management systems, as customers see big...
‘RT3 motto is: Do not check millimetres, check colours.’
Shingora Textiles Ltd
‘In terms of fabric, the fastest growing category for us is a blend of...
Steve Cole of Xerium Technologies discusses the industry. Xerium is the...
Suominen Corporation is a manufacturer of nonwovens as roll goods for...
Nature Works LLC
Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...
Yash P. Kotak
Bombay Hemp Company
One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...
Label Ritu Kumar
‘Classics will return’ "There are a lot of people wearing western clothes ...
Occasions Elegance Wear
It is believed that by early 19th century, Varanasi weavers had moved away ...
Apparel/Garments | On 21st Oct 2016