Free Cash Flow Allows HanesBrands to Call for Redemption of $150
Million of Floating Rate Senior Notes Due 2014
WINSTON-SALEM, N.C.--(BUSINESS WIRE)--Jun. 14, 2012--
HanesBrands (NYSE: HBI) announced today 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.
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,” said Hanes Chief Financial
Officer 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.”
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.
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, 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. These risks and
uncertainties include the risks identified from time to time in
HanesBrands’ most recent Securities and Exchange Commission reports,
including Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K, registration statements, press releases and
other communications. 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, JMS/Just My Size, barely
there, Wonderbra and Gear For Sports. The company
sells T-shirts, bras, panties, men’s underwear, children’s underwear,
socks, hosiery, casualwear and activewear produced in the company’s
low-cost global supply chain. Ranked No. 512 on the Fortune 1000 list,
Hanes has approximately 53,300 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 2012
Sustained Excellence Award winner and 2010 and 2011 Partner of the Year.
The company ranks No. 152 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
on the Hanes corporate website at www.hanesbrands.com.
Source: HanesBrands
HanesBrands
News Media:
Matt Hall, 336-519-3386
or
Analysts
and Investors:
Charlie Stack, 336-519-4710