Published on 11/4/2010 in the Prospect News High Yield Daily.
New Issue: Hanesbrands sells upsized $1 billion 6 3/8% 10-year notes at par
By Paul A. Harris
St. Louis, Nov. 4 - Hanesbrands Inc. priced an upsized $1 billion issue of 10-year senior notes (B1/BB-/) at par to yield 6 3/8% on Thursday, according to an informed source.
The yield printed at the tight end of the 6 3/8% to 6½% price talk.
Bank of America Merrill Lynch, Barclays Capital Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Goldman Sachs & Co. were the joint bookrunners for the quick-to-market issue, which was upsized from $750 million.
Co-managers were BB&T Capital Markets, Fifth Third Securities Inc., PNC Capital Markets, RBC Capital Markets Corp., Scotia Capital and SunTrust Robinson Humphrey Inc.
The Winston-Salem, N.C.-based apparel company will use the proceeds to repay bank debt and for general corporate purposes.
| Issuer: | Hanesbrands Inc.
|
| Amount: | $1 billion, increased from $750 million
|
| Maturity: | Dec. 15, 2020
|
| Securities: | Senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Goldman Sachs & Co.
|
| Co-managers: | BB&T Capital Markets, Fifth Third Securities Inc., PNC Capital Markets, RBC Capital Markets Corp., Scotia Capital, SunTrust Robinson Humphrey Inc.
|
| Coupon: | 6 3/8%
|
| Price: | Par
|
| Yield: | 6 3/8%
|
| Spread: | 390 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Dec. 15, 2015, then callable at 103.188, 102.125, 101.062, par on and after Dec. 15, 2018
|
| Equity clawback: | 35% at 106.375 until Dec. 15, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 4
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| Settlement date: | Dec. 15
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| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 6 3/8% to 6½%
|
| Marketing: | Quick to market
|
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