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Fashion retailer Perry Ellis to redeem $57 mn Senior Secured Notes
02 Feb '06
2 min read
Apparel retailer Perry Ellis International Inc announced that it has exercised the call provision of the $57 million 9 1/2 Senior Secured Notes to redeem these notes effective March 15, 2006.
The Company indicated that it expects annual interest expense savings of approximately $1.5 million as a result of lowering its overall cost of capital from this transaction.
The Company expects to utilize its $175 million revolving senior credit facility and cash flow from operations to redeem the senior secured notes.
As of January 31, 2006, the Company had approximately $40 million of borrowings outstanding on its $175 million revolving senior credit facility.
The call provision as of March 15, 2006 permits the bonds to be redeemed at a premium of 102.375 percent, and the Company expects to incur debt extinguishment costs of approximately $3.0 million during the first quarter of fiscal 2007 in connection with this action, including call premium costs, write-off of bond issue costs and costs associated with the termination of derivatives related to the senior secured notes.
George Feldenkreis, Chairman & CEO said that They were pleased that their strong cash flow allows them to take advantage of this opportunity to reduce their overall cost of capital.
During the year ended January 31, 2006 as a result of the February 2005 Tropical Sportswear and January 2006 Gotcha acquisitions, they funded approximately $95 million of acquisitions from their credit facility.
The Company indicated that it expects annual interest expense savings of approximately $1.5 million as a result of lowering its overall cost of capital from this transaction.
The Company expects to utilize its $175 million revolving senior credit facility and cash flow from operations to redeem the senior secured notes.
As of January 31, 2006, the Company had approximately $40 million of borrowings outstanding on its $175 million revolving senior credit facility.
The call provision as of March 15, 2006 permits the bonds to be redeemed at a premium of 102.375 percent, and the Company expects to incur debt extinguishment costs of approximately $3.0 million during the first quarter of fiscal 2007 in connection with this action, including call premium costs, write-off of bond issue costs and costs associated with the termination of derivatives related to the senior secured notes.
George Feldenkreis, Chairman & CEO said that They were pleased that their strong cash flow allows them to take advantage of this opportunity to reduce their overall cost of capital.
During the year ended January 31, 2006 as a result of the February 2005 Tropical Sportswear and January 2006 Gotcha acquisitions, they funded approximately $95 million of acquisitions from their credit facility.
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