By Paul A. Harris
Portland, Ore., Feb. 10 – Hanesbrands, Inc. priced a $600 million issue of eight-year senior notes (B1/BB-) at par to yield 9% in a Friday drive-by, according to market sources.
The yield printed at the tight end of the 9% to 9¼% yield talk. Initial guidance was in the 9½% area.
The deal was heard to have played to reverse inquiry in excess of the size of the offering, a sellside source said, adding that it ended up being 4.5-times oversubscribed.
J.P. Morgan Securities LLC is the lead.
The Winston-Salem, N.C.-based clothing company plans to use the proceeds plus a new term loan and cash on hand to redeem all outstanding 4 5/8% senior notes due 2024 and its 3½% senior notes due 2024.
| Issuer: | Hanesbrands, Inc.
|
| Amount: | $600 million
|
| Issue: | Senior notes
|
| Maturity: | Feb. 15, 2031
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| Lead: | J.P. Morgan Securities LLC
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Spread: | 523 bps
|
| First call: | Feb. 15, 2026 at 104.5
|
| Trade date: | Feb. 10
|
| Settlement date: | Feb. 14
|
| Ratings: | Moody's: B1
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 9% to 9¼%
|
| Marketing: | Drive-by
|
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