Russell Corp. to sell $200 million eight-year notes via JP Morgan

By Paul A. Harris and Sara Rosenberg

St. Louis, Mo., April 1 - Russell Corp. figures to price $200 million of senior notes due 2010 figures on April 9 or 10, according to a syndicate source.

JP Morgan is bookrunner. Co-managers include Fleet Securities, Merrill Lynch, SunTrust Robinson Humphrey and Wachovia Securites.

The Rule 144A notes are non-callable for four years.

Russell is also obtaining a new $375 million senior secured credit facility and has chosen Fleet Boston Financial Corp. as lead bank. Also involved in the syndicate are Sun Trust, Bank of America Securities and Wachovia.

In a press release on Monday, the company announced that the credit facility is expected to consist of a $325 million five-year revolver and a $50 million five-year term loan. According to market sources, the revolver has an interest rate of Libor plus 250 basis points and a commitment fee of 50 basis points on the unused portion of the loan. The term loan, according to sources, has an interest rate of Libor plus 300 basis points.

The Atlanta, Ga.-based apparel company will use the proceeds from the new notes and credit facility to repay all of its bank debt and long-term notes.

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