Levi Strauss tenders for $375 million of 7% notes

New York, Dec. 15 - Levi Strauss & Co. said it has begun a cash tender offer for up to $375 million of its $450 million 7% notes due 2006.

The San Francisco jeans company will pay a price based on a yield of 75 basis points over the 2.50% U.S. Treasury note due Oct. 31, 2006. It will also pay accrued interest up to but excluding the settlement date.

The total includes a $20.00 per $1,000 early tender premium that will only be paid to holders who tender by 5 p.m. ET on Dec. 29.

The offer expires at midnight ET on Jan. 12.

If the tender is oversubscribed, Levi Strauss will accept notes on a pro rata basis.

Levi Strauss added that it expects to enter into a secured or other financing in 2005 that will allow it to repurchase or otherwise refinance the remaining $75 million principal amount of 7% notes.

The tender is subject to conditions, including the company raising at least $375 million from a sale of notes.

Citigroup Global Markets Inc. is dealer manager. Georgeson Shareholder Communications Inc. is the information agent (212 440-9800 or 877 868-4958).

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