By Paul Deckelman
New York, Dec. 3 - Hanesbrands Inc. priced $500 million 8% of senior notes (B1/B+) due Dec. 15, 2016 on Thursday at 98.686 to yield 8¼%, high yield syndicate sources said.
The deal came in at the tight end of pre-deal price talk which had circulated in the market Wednesday, envisioning a yield between 8¼% and 8½%, with an original issue discount of between 1 and 2 points.
The public offering, registered with the Securities and Exchange Commission, was brought to market via joint bookrunners J.P. Morgan Securities Inc., Banc of America Securities LLC, HSBC Securities (USA) Inc., and Goldman Sachs & Co. Co-managers were Barclays Capital Inc., BB&T Capital Markets, PNC Capital Markets LLC and RBC Capital Markets Corp.
The notes are non-callable for the first four years, other than a make-whole call at 50 basis points over Treasuries and the standard three-year equity clawback provision for up to 35% of the issue. The indenture also contains a change-of-control provision allowing holders to put the bonds back to the company at 101% of principal plus accrued interest in that event.
The Winston-Salem, N.C.-based apparel manufacturer, well-known for its branded underwear and hosiery products for men, women and children, plans to use the net proceeds, together with borrowings from its proposed $1.15 billion of new senior secured credit facilities, to refinance some or all of its outstanding debt under its existing senior secured credit facility, and to repay all outstanding debt under its senior secured second-lien credit facility.
| Issuer: | Hanesbrands Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Proceeds: | $493.43 million
|
| Maturity: | Dec. 15, 2016
|
| Bookrunners: | J.P. Morgan Securities Inc., Banc of America Securities LLC, HSBC Securities (USA) Inc., and Goldman Sachs & Co. (joint)
|
| Co-managers: | Barclays Capital Inc., BB&T Capital Markets, PNC Capital Markets LLC and RBC Capital Markets Corp.
|
| Coupon: | 8%
|
| Price: | 98.686 |
|
| Yield: | 8¼%
|
| Spread: | 541 basis points over 4.625% Treasury due Nov. 15, 2016
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Dec.mber 15, 2013; then callable at 104, at 102, then par on or after Dec. 15, 2015
|
| Equity clawback: | For up to 35% of the issue at 108 up to Dec. 15, 2012
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| Trade date: | Dec. 3
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| Settlement date: | Dec. 10
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| Ratings: | Moody's: B1
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| S&P: B+
|
| Distribution: | Off shelf
|
| Price talk: | 8¼% to 8½%, with 1-2 points OID
|
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