HanesBrands to prepay 8% senior notes due 2016

The company will prepay the remaining $250 million of 8 Percent Senior Notes on Dec. 16, 2013, completing its successful multiyear campaign to use cash flow to retire all of the company’s bond debt except for its $1 billion of 6.375 percent notes.

The company expects to incur costs of approximately $15 million in the fourth quarter of 2013 for bond prepayment expenses and acceleration of noncash unamortized debt costs. The expectation for these costs has been previously communicated and is incorporated in the company’s 2013 financial guidance.

“We have a very strong balance sheet to support our strategies to continually generate shareholder value,” Hanes Chief Financial Officer Richard D. Moss said. “Over the past five years, we have reduced our long-term bond debt by half, a $1 billion reduction. Now, we are deploying our resources to continue our value-creation momentum by investing in our Innovate-to-Elevate strategy, paying regular quarterly cash dividends, and assessing acquisition and share-repurchase opportunities.”

HanesBrands