GFSI offers 11% senior secured notes due 2011 for existing 9 5/8% notes due 2007

New York, Dec. 8 - GFSI, Inc. announced it is offering new notes with a higher coupon, seniority in the capital structure and longer maturity for its existing $134.9 million of 9 5/8% senior subordinated notes due 2007.

The Lenexa, Kan., sportswear manufacturer is offering the new 11% senior secured notes due 2011 on a one-for-one basis for the existing debt.

In addition, GFSI is soliciting consents to amend the indenture for the 9 5/8% notes to eliminate substantially all of the restrictive covenants and certain events of default and related provisions in such indentures.

The exchange and consent solicitation are subject to various conditions including that 95% of the existing notes are tendered. GFSI also needs the consent of its bank lenders. The offer is subject to parent company GFSI Holdings, Inc. completing refinancing transactions.

GFSI will pay accrued interest on the existing notes in cash.

Only noteholders who are qualified institutional buyers and accredited investors may participate in the exchange.

The offer ends at 5 p.m. ET on Jan. 5.

Holders who tender with consents by 5 p.m. ET on Dec. 20 or the date on which the conditions to the offer are met - if earlier - will receive a consent fee of $10 per $1,000 principal amount.

U.S. Bank NA is the exchange agent (800 934-6802). MacKenzie Partners, Inc. is the information agent (212 929-5500).

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