Warnaco sets Friday launch for $180 million term loan B

By Sara Rosenberg

New York, Jan. 11 - The Warnaco Group Inc. has scheduled a bank meeting for Friday to launch its proposed $180 million seven-year term loan B (BB), according to a market source.

Citigroup Global Markets Inc. and JPMorgan are the lead banks on the deal, with Citi the left lead.

The term loan is talked at Libor plus 175 basis points, the source said.

Proceeds will be used to help fund the purchase of Calvin Klein licenses in Europe and Asia. Previously it was known that the company would be launching a new loan this month for this transaction, but specific timing and structure were unavailable until now.

Under the acquisition agreement, Warnaco will purchase 100% of the shares of the companies that operate the licenses and related wholesale and retail businesses of Calvin Klein jeans and accessories in Europe and Asia and the CK Calvin Klein "bridge" line of sportswear and accessories in Europe from Fingen SPA for €240 million.

The transaction is expected to close in the first quarter, upon receipt of regulatory approval and satisfaction of certain other closing conditions.

Warnaco is a New York-based intimate apparel, sportswear and swimwear company.

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