Russell completes refinancing; closes on $325 million credit facility with Fleet

By Sara Rosenberg

New York, April 18 - Russell Corp. announced the completion of its previously announced refinancing. The Atlanta, Ga. based apparel company obtained a $325 million senior secured credit facility from Fleet Capital, which closed on Thursday. Fleet Securities acted as lead arranger for the deal. In addition to the loan, the company also sold $250 million in 9.25% senior unsecured notes due 2010.

The restructured loan consists of a $300 million five-year revolver with an interest rate of Libor plus 250 basis points and a $25 million five-year term tranche with an interest rate of Libor plus 300 basis points. The commitment fee is 50 basis points on the revolver.

Proceeds combined with proceeds from the $250 million senior note sale were used towards refinancing existing debt. Additional available borrowings under the revolver will be used for general corporate purposes, according to the release.

Moody's Investors Service rates the loan Ba2. Standard and Poor's rates the loan BB+.

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