As Planned, Company is Using Strong Cash Position to Prepay the Remaining $250 Million 8% Notes on Dec. 16, 2013
Company Completes Goal to Reduce Long-Term Bond Debt to $1 Billion
HanesBrands (NYSE: HBI), a leading marketer of everyday basic apparel
under world-class brands, announced today that it will use its strong
cash position in December to complete its previously communicated goal
to prepay all remaining 8 Percent Senior Notes Due 2016 and reduce bond
debt to $1 billion.
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.”
Cautionary Statement Concerning Forward-Looking Statements
Statements in this press release that are not statements of historical
fact, including those regarding the company’s debt-reduction plans and
future financial performance, are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. Forward-looking statements are
based on current intent, beliefs, plans and expectations and involve
risks and uncertainties that may cause actual results to differ
materially from HanesBrands’ historical experience and present
expectations or projections. The company cautions investors not to place
undue reliance on any forward-looking statements and encourages
investors to review risk factors contained in the company’s most recent
Securities and Exchange Commission reports, including our annual report
on Form 10-K, quarterly reports on Form 10-Q, current reports on Form
8-K, registration statements, press releases and other communications,
as well as in the investors section of our corporate website at www.hanes.com/investors.
Any forward-looking statement speaks only as of the date on which such
statement is made, and HanesBrands does not undertake any obligation to
update any forward-looking statement to reflect events or circumstances
after the date on which such statement was made.
HanesBrands
HanesBrands is a socially responsible leading marketer of everyday basic
apparel under some of the world’s strongest apparel brands, including Hanes,
Champion, Playtex, Bali, Maidenform, Flexees,
JMS/Just My Size, barely there, Wonderbra and Gear
for Sports. The company sells T-shirts, bras, panties, shapewear,
men’s underwear, children’s underwear, socks, hosiery, and activewear
produced in the company’s low-cost global supply chain. Ranked No. 512
on the Fortune 1000 list, Hanes has approximately 51,500 employees in
more than 25 countries and takes pride in its strong reputation for
ethical business practices. Hanes is a U.S. Environmental Protection
Agency Energy Star 2013 and 2012 Sustained Excellence Award winner and
2010 and 2011 Partner of the Year. The company ranks No. 141 on Newsweek
magazine’s list of Top 500 greenest U.S. companies. More information
about the company and its corporate social responsibility initiatives,
including environmental, social compliance and community improvement
achievements, may be found at www.Hanes.com/Corporate.
