Trade Resources Industry Views Reduction of Long-Term Debt Is Initiated by Hanesbrands

Reduction of Long-Term Debt Is Initiated by Hanesbrands

HanesBrands announced that it intends to redeem the final $147.1 million of its Floating Rate Senior Notes due 2014, which will complete the retirement of approximately $300 million of floating-rate bond debt as planned in 2012.

Hanes is using free cash flow to significantly reduce long-term debt and leverage in 2012 and plans to continue in 2013.

"Free cash flow is tracking to our plans and has allowed us to meet our goal of retiring all $300 million of our floating-rate notes this year," said Hanes Chief Financial Officer Richard D. Moss. "Our priority for use of free cash flow next year will continue to be the deleveraging of our balance sheet as we expect to prepay another $500 million of bond debt late in 2013."

Hanes has issued a notice of redemption pursuant to the indenture for the Floating Rate Notes due 2014 stating that it intends to redeem $147,055,000 aggregate principal amount of the Floating Rate Notes on Oct. 17, 2012, at a redemption price equal to 100 percent of the principal amount of the Notes, including interest accrued and unpaid to the redemption date. Hanes had already redeemed $150 million of the Floating Rate Notes on July 12, 2012.

Next year, the company's goal is to pay off its $500 million of 8 percent notes, reducing bond debt to approximately $1 billion.

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, JMS/Just My Size, barely there, Wonderbra and Gear For Sports.

Source: http://www.fibre2fashion.com/news/apparel-news/newsdetails.aspx?news_id=115893
Contribute Copyright Policy
HanesBrands Initiates Reduction of Long-term Debt