S&P assigns Hanesbrands notes BB-

S&P said it assigned its BB- issue-level and 4 recovery ratings to Hanesbrands Inc.'s planned $600 million of senior unsecured notes. The 4 recovery rating (30%-50%; rounded estimate: 40%) indicates average recovery in default.

Additionally, the company upsized its senior secured term loan B launched on Monday to $900 million from the previously proposed $750 million. The upsize to the senior secured term loan reduces the rounded recovery estimate to 90% from 95%, the 1 recovery rating remains unchanged. The planned incremental senior unsecured notes reduce the rounded recovery estimate for the remaining $900 million of 4.88% senior unsecured notes to 40% from 45%, though the 4 recovery rating remains unchanged.

Hanesbrands will use the proceeds of the loan and the notes to repay its outstanding notes maturing in 2024, including its €500 million of 3½% notes and $900 million of 4 5/8% notes. Upon its full repayment of the 2024 notes, S&P said it withdraw its ratings on the instruments.

The outlook is negative.

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