HanesBrands (NYSE: HBI) today announced that it has favorably amended
its senior secured credit facility to enhance the company’s long-term
global growth and capital allocation strategies.
The amended credit facility reduces interest rates, increases capacity,
and increases the flexibility of the facility’s indebtedness, investment
and restricted payments baskets, and leverage-ratio requirements.
“We are very pleased with the strong support we received in the credit
markets,” said Hanes Chief Financial Officer Barry A. Hytinen. “The
favorable amendments will further assist us in continuing to create
long-term value for investors.”
The senior secured credit facility increased to $2.25 billion from
$1.925 billion and consists of a $1 billion revolving credit facility, a
$750 million Term Loan A, and a $500 million Term Loan B.
The interest rates of the revolver and Term Loan A decreased 25 basis
points, while the rate for the Term Loan B decreased 75 basis points.
Other highlights include: significant improvements to the Term Loan A
amortization schedule; maturity extensions for the revolver and term
loans; covenant amendments that include partial credit for cash in
calculating leverage; and an increase of the maximum permitted total net
leverage ratio to 4.5 times EBITDA with an allowable step up to 5.0
times for 12 months following a permitted acquisition.
A summary chart with additional details of the amended credit facility
is included with the company’s filing today with the SEC and is
available on the company's investor relations website at www.Hanes.com/investors.
Cautionary Statement Concerning Forward-Looking Statements
Statements in this press release that are not statements of historical
fact 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, including those regarding the expected benefits resulting
from the amendment of our senior secured credit facility. These
forward-looking statements are based on our current intent, beliefs,
plans and expectations. Readers are cautioned not to place any undue
reliance on any forward-looking statements. Forward-looking statements
necessarily involve risks and uncertainties, many of which are outside
of our control, that could cause actual results to differ materially
from such statements and from our historical results and experience.
These risks and uncertainties include such things as: the highly
competitive and evolving nature of the industry in which we compete; any
inadequacy, interruption, integration failure or security failure with
respect to our information technology; significant fluctuations in
foreign exchange rates; the rapidly changing retail environment; our
complex multinational tax structure; our ability to properly manage
strategic projects; our ability to attract and retain a senior
management team with the core competencies needed to support our growth
in global markets; risks related to our international operations,
including the impact to our business as a result of the United Kingdom’s
recent referendum to leave the European Union; the impact of significant
fluctuations and volatility in various input costs, such as cotton and
oil-related materials, utilities, freight and wages; our ability to
access sufficient capital at reasonable rates or commercially reasonable
terms or to maintain sufficient liquidity in the amounts and at the
times needed; and other risks identified from time to time in our most
recent Securities and Exchange Commission reports, including our annual
report on Form 10-K and quarterly reports on Form 10-Q. Since it is not
possible to predict or identify all of the risks, uncertainties and
other factors that may affect future results, the above list should not
be considered a complete list. Any forward-looking statement speaks only
as of the date on which such statement is made, and HanesBrands
undertakes no obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise, other than as required by law.
HanesBrands
HanesBrands is a socially responsible leading marketer of everyday basic
innerwear and activewear apparel in the Americas, Europe, Australia and
Asia-Pacific. The company markets T-shirts, bras, panties, shapewear,
underwear, socks, hosiery, and activewear under some of the world’s
strongest apparel brands, including Hanes, Champion, Maidenform,
DIM, Bali, Playtex, Bonds, JMS/Just My Size, Nur
Die/Nur Der, L’eggs, Lovable, Wonderbra, Berlei,
Alternative, and Gear for Sports. More information about the
company and its award-winning corporate social responsibility
initiatives may be found at www.Hanes.com/corporate.
Connect with HanesBrands via social media on Twitter (@HanesBrands)
and Facebook (www.facebook.com/hanesbrandsinc).
