Levi Strauss gets $850 million ABL revolver at Libor plus 175 bps

By Angela McDaniels

Tacoma, Wash., Sept. 30 - Levi Strauss & Co. and Levis Strauss & Co. (Canada) Inc. entered into an $850 million asset-based revolving credit facility due Sept. 30, 2016 on Friday, according to an 8-K filing with the Securities and Exchange Commission.

Of the $850 million, $800 million is available for revolving loans in U.S. dollars and $50 million is available for revolving loans in U.S. dollars or Canadian dollars.

The interest rate is Libor plus 150 basis points to 275 bps, depending on the borrowing base availability, and the commitment fee is 37.5 bps to 50 bps. The initial interest rate is Libor plus 175 bps.

The maturity date may be accelerated to Dec. 26, 2013 if the company's May 27, 2007 term loan with Bank of America, NA as administrative agent is still outstanding on that date and the company has not met certain other conditions.

Borrowings are prepayable at any time, and the company must make mandatory prepayments if certain events occur.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Wells Fargo Capital Finance are the bookrunners.

JPMorgan Chase Bank, NA is the administrative agent. Bank of America is the syndication agent. Wells Fargo Capital Finance, LLC and HSBC Bank USA, NA are the co-documentation agents.

In connection with the new facility, the company terminated its $750 million ABL revolver due Oct. 11, 2012.

Levi Strauss is a San Francisco-based apparel maker.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.