By Paul A. Harris
Portland, Ore., May 3 – Hanesbrands Inc. priced $1.8 billion of non-callable senior notes (Ba2/BB) in two tranches on Tuesday, according to a market source.
The deal, which was upsized from $1.5 billion, featured $900 million of eight-year notes, which priced at par to yield 4 5/8%. The yield printed at the tight end of yield talk in the 4¾% area and inside of the initial 4¾% to 5% guidance, the source said.
In addition Hanesbrands priced $900 million of 10-year notes at par to yield 4 7/8%. The yield printed at the tight end of yield talk in the 5% area and inside of the initial 5% to 5¼% guidance.
Half the deal was said to have been spoken for by way of reverse inquiry, sources said.
The deal was 1.5-times oversubscribed, with both tranches active in the secondary market, according to a trader who saw them both at par ¼ bid, par ½ offered.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays, HSBC, SunTrust Robinson Humphrey Inc. and Goldman Sachs & Co. were the joint bookrunners.
The Winston Salem, N.C.-based marketer of everyday basic apparel plans to use the proceeds to refinance its 6 3/8% senior notes due Dec. 15, 2020 and to repay revolver debt.
| Issuer: | Hanesbrands Inc.
|
| Amount: | $1.8 billion, increased from $1.5 billion
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Barclays, HSBC, SunTrust Robinson Humphrey Inc., Goldman Sachs & Co.
|
| Trade date: | May 3
|
| Settlement date: | May 6
|
| Ratings: | Moody's: Ba2
|
| S&P: BB
|
| Distribution: | Rule 144A for life
|
| Marketing: | Quick to market
|
|
|
| Eight-year notes
|
| Amount: | $900 million
|
| Maturity: | May 15, 2024
|
| Coupon: | 4 5/8%
|
| Price: | Par
|
| Yield: | 4 5/8%
|
| Spread: | 296 bps
|
| Call protection: | Non-callable
|
| Price talk: | 4¾% area
|
|
|
| 10-year notes
|
| Amount: | $900 million
|
| Maturity: | May 15, 2026
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Spread: | 308 bps
|
| Call protection: | Non-callable
|
| Price talk: | 5% area
|
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