Levi Strauss $1.15 billion loan bank meeting scheduled for next week

By Sara Rosenberg

New York, Sept. 10 - Levi Strauss & Co. is scheduled to hold a bank meeting for a new $1.15 billion credit facility next week, according to market sources. Bank of America is the lead bank on the deal, which is expected to be completed within the next several weeks.

The company also said it is seeking waivers of covenants under its existing facility until the new loan is put in place.

The new facility consists of a $650 million asset-based revolver maturing in 2007 and a $500 million senior secured term loan maturing in 2009, according to a news release.

Bank of America and Levi Strauss declined to comment on any further details of the deal, such as specific timing and price talk.

This new financing would replace the company's existing senior secured credit facility consisting of a $375 million revolver and $365 million term loan, as well as $110 million of debt arranged under an accounts receivables securitization.

"We believe our new financing arrangement will give us the financial flexibility we need to pursue our restructuring plans as soon as possible," said, Bill Chiasson, chief financial officer, in the release.

"Additionally, we expect this new agreement to provide us with greater liquidity and extended maturity dates, which will improve our debt structure. Due to the difficult environment, we cannot be sure that we will remain in compliance with all of the financial covenants set forth in our existing credit facility, and we believe it is appropriate to seek a temporary waiver that we expect to remain in place until the new financing is finalized."

Levi Strauss is a San Francisco brand name clothing company.

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