Gold Toe credit facility expected as late September business

By Sara Rosenberg

New York, Aug. 25 - Gold Toe Investment Corp. anticipates holding a bank meeting in late September to launch its proposed credit facility, according to a market source.

Bear Stearns is the lead bank on the deal.

Details on the structure of the credit facility are not available at this time, the source added.

Proceeds will be used to help fund the leveraged buyout of Gold Toe by The Blackstone Group and simultaneous merger with Moretz Inc.

The LBO/merger transaction is valued at about $400 million.

In connection with the deal, the outstanding indebtedness and preferred stock of Gold Toe's wholly owned subsidiary Gold Toe Corp. will be refinanced, including its 10 1/8% senior subordinated notes due 2008 and 12.5% senior exchangeable preferred stock due 2010.

As a result of its investment, Blackstone will be the majority owner of the company, John Moretz, chief executive officer, will be the second largest shareholder and an affiliate of Vestar Capital Partners, the current majority owner of Gold Toe, will retain a minority stake.

Gold Toe is a New York-based hosiery company. Moretz is a Newton, N.C.-based sockwear manufacturer and private labeler for the sporting goods market and retailers.

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