Kontoor Brands firms $300 million term loan B at Libor plus 425 bps

By Sara Rosenberg

New York, May 8 – Kontoor Brands Inc. finalized pricing on its $300 million seven-year covenant-lite term loan B at Libor plus 425 basis points, the low end of the Libor plus 425 bps to 450 bps talk, according to a market source.

Also, the MFN sunset was removed from the term loan B, the source said.

As before, the term loan B has a 0% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $1.55 billion of credit facilities (Ba2/BB-) also include a $500 million five-year revolver and a $750 million five-year term loan A.

J.P. Morgan Securities LLC, Barclays, Bank of America Merrill Lynch, Wells Fargo Securities LLC and HSBC Securities (USA) Inc. are the joint lead arrangers on the deal.

Proceeds will be used to help fund the company’s spinoff from VF Corp. and for general corporate purposes.

Closing is expected in the first half of this year, subject to customary conditions.

Kontoor Brands is a Greensboro, N.C.-based jeanswear company.

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