HanesBrands lifts term B to $425 million, flexes to Libor plus 250 bps

By Sara Rosenberg

New York, April 24 – HanesBrands Inc. upsized its seven-year term loan B to $425 million from $325 million and lowered pricing to Libor plus 250 basis points from talk of Libor plus 275 bps to 300 bps, according to a market source.

Also, the offer price on the term loan B was changed to par from 99˝ and the 101 soft call protection was extended to one year from six months, the source said.

The term loan B still has a 0.75% Libor floor.

The company’s now $1.85 billion senior secured credit facility (Baa3/BBB-), up from $1.75 billion, also includes a $1 billion five-year revolver and a $425 million five-year term loan A.

Recommitments are due at 5 p.m. ET on Monday.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to refinance existing debt. The funds from the term loan B upsizing will reduce borrowings under the revolver, the source added.

HanesBrands is a Winston Salem, N.C.-based marketer of everyday basic apparel.

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