HanesBrands has announced the completion of a refinancing for the last remaining series of its 2024 notes, successfully closing an upsized new Senior Secured Term Loan B Facility in an aggregate principal amount of 900 million dollars.
In a release, the company said that the net proceeds from the facility together with the proceeds of the 600 million dollar bond offering, which was completed February 14, were used to redeem all of its outstanding 4.625 percent senior notes and 3.5 percent senior notes both due 2024.
The CEO of Hanes, Steve Bratspies, commented: “We are pleased with the successful refinancing of our 2024 maturities, including the pricing, terms and mix of pre-payable debt.
“With the refinancing behind us, we believe we now have the financial flexibility to continue to invest in our Full Potential growth strategy while positioning us to focus our free cash flow on reducing debt.
“We believe the combination of executing our Full Potential growth strategy and significant debt reduction will drive higher sales, profits, operating cash flow and shareholder returns over the next several years.”
Hanes initially launched its multi-year growth strategy in 2021, with plans to grow its Champion brand globally, drive growth for its innerwear category among younger consumers and build up e-commerce across its portfolio.
While 2021 seemingly saw the company’s financials on the rise, throughout 2022 it regularly reported sales declines in each quarter, as seen in its most recent Q4 results, where it particularly noted that its Champion brand sales had decreased 18 percent.