(Filed Under Financial and General Interest News). HanesBrands announced that it intends to redeem in July $150 million of its Floating Rate Senior Notes due 2014 as part of plans to pay off its approximately $300 million of floating-rate bond debt in 2012.
According to the company, “The redemption of the Floating Rate Notes is consistent with Hanes’ plans to use free cash flow in 2012 and 2013 to significantly reduce long-term debt and leverage.”
“Free cash flow is tracking to our plans, and we are taking the opportunity to begin the reduction of floating-rate debt a little earlier than originally planned this year,” explained Hanes CFO Richard D. Moss. “We are using our strong capital structure and operating results to deleverage our balance sheet consistent with our strong free cash flow.”
The company declared “Hanes has issued a notice of redemption pursuant to the indenture for the Floating Rate Notes due 2014 stating that it intends to redeem $150 million aggregate principal amount of the Floating Rate Notes on July 12, 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. Following the redemption date, up to $147,055,000 aggregate principal amount of Floating Rate Notes will remain outstanding. In addition to expectations to pay off the approximately $300 million in floating rate notes in 2012, the company’s goal is to pay off its $500 million of 8 percent notes in 2013, reducing bond debt to approximately $1 billion.”
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