HanesBrands readies launch of $500 million term loan B for Friday

By Sara Rosenberg

New York, Nov. 30 – HanesBrands will hold a lender call on Friday to launch a $500 million seven-year term loan B, according to a market source.

J.P. Morgan Securities LLC is the lead bank on the deal.

Price talk on the term loan B is Libor plus 200 basis points to 225 bps with a 0% Libor floor and an original issue discount of 99.75, the source said.

The term loan B has 101 soft call protection for six months.

Commitments are due at noon ET on Dec. 13, the source added.

Proceeds will be used to refinance an existing $318.6 million term loan B due April 2022 that is priced at Libor plus 250 bps with a 0.75% Libor floor.

The company is also looking to increase the size, reduce the rate and extend the maturity of its term loan A, reduce the rate and extend the maturity of its revolving credit facility, and achieve other favorable credit agreement improvements.

The amendment is expected to enhance the support of the company’s global growth model, including its value-creating capital allocation strategy.

Closing is anticipated by year-end.

HanesBrands is a Winston Salem, N.C.-based marketer of everyday basic apparel.

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