Attached files
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8-K - FORM 8-K - Hanesbrands Inc. | g26159e8vk.htm |
EX-10.1 - EX-10.1 - Hanesbrands Inc. | g26159exv10w1.htm |
Exhibit 99.1
Hanesbrands Inc.
1000 East Hanes Mill Road
Winston-Salem, NC 27105
(336) 519-8080
1000 East Hanes Mill Road
Winston-Salem, NC 27105
(336) 519-8080
news release
FOR
IMMEDIATE RELEASE |
||
News Media, contact:
|
Matt Hall, (336) 519-3386 | |
Analysts and Investors, contact:
|
Brian Lantz, (336) 519-7130 |
HANESBRANDS
FAVORABLY AMENDS CREDIT FACILITY REFLECTING IMPROVED DEBT RATING
Senior Secured Credit Facility Terms Now Reflect Strength of the Companys Debt Ratings, Including
Moodys Investor Services Investment-Grade Rating
WINSTON-SALEM, N.C. (Feb. 17, 2011) HanesBrands (NYSE: HBI) today announced that it has
favorably amended its senior secured credit facility, which includes the companys revolving credit
facility, to reflect improved debt ratings.
The amendment reduces the credit facilitys interest rate, extends the facilitys maturity date,
and increases the flexibility of debt covenants and the use of excess cash flow.
Due
to the strength of our operating results, we have further enhanced our
long-term capital structure, said Hanes Chief Financial Officer E. Lee Wyatt Jr. We are focused
on achieving another year of double-digit earnings growth and expanding our long-term market share.
In November 2010, the company issued $1 billion of 10-year fixed-rate notes, bringing the companys
portion of fixed-rate bond debt at favorable rates and long
maturities to approximately 75 percent. Moodys
Investor Services then increased the companys senior secured debt rating to investment-grade Baa3.
Reflecting the companys significant reduction in risk, the amendment extends the credit facilitys
maturity two years until December 2015 and reduces the current interest rate on the companys
revolver to LIBOR plus 3.25 percent, down from LIBOR plus 4.5 percent. The lower rate was already reflected in the
companys 2011 guidance on interest expense.
The amendment significantly increases the flexibility of the facilitys indebtedness, investment
and restricted payments baskets, leverage ratio requirements and use of excess cash flow.
Cautionary Statement Concerning Forward-Looking Statements
Statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including those regarding our long-term goals and trends associated with our business. Examples of such statements include the statements regarding expected growth in 2011. These and other forward-looking statements are made only as of the date of this press release and are based on our current intent, beliefs, plans and expectations. They involve risks and uncertainties that could cause actual future results,
Statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including those regarding our long-term goals and trends associated with our business. Examples of such statements include the statements regarding expected growth in 2011. These and other forward-looking statements are made only as of the date of this press release and are based on our current intent, beliefs, plans and expectations. They involve risks and uncertainties that could cause actual future results,
HanesBrands Favorably Amends Senior Secured Credit Facility Page 2
performance or developments to differ materially from those described in or implied by such
forward-looking statements. These risks and uncertainties include the following: our ability to
successfully manage social, political, economic, legal and other conditions affecting our domestic
and foreign operations and supply-chain sources; the impact of significant fluctuations and
volatility in the price of various input costs, such as cotton and oil-related materials,
utilities, freight and wages; the impact of natural disasters; the impact of the loss of one or
more of our suppliers of finished goods or raw materials; our ability to effectively manage our
inventory and reduce inventory reserves; our ability to optimize our global supply chain; our
ability to continue to effectively distribute our products through our distribution network;
consumer spending levels and the price elasticity of our products; the risk of inflation or
deflation; financial difficulties experienced by, or loss of or reduction in sales to, any of our
top customers or groups of customers; gains and losses in the shelf space that our customers devote
to our products; the highly competitive and evolving nature of the industry in which we compete;
our ability to keep pace with changing consumer preferences; the impact of any inadequacy,
interruption or failure with respect to our information technology or any data security breach; our
debt and debt service requirements that restrict our operating and financial flexibility and impose
interest and financing costs; the financial ratios that our debt instruments require us to
maintain; future financial performance, including availability, terms and deployment of capital;
our ability to comply with environmental and occupational health and safety laws and regulations;
costs and adverse publicity from violations of labor or environmental laws by us or our suppliers;
and other risks identified from time to time in our most recent Securities and Exchange Commission
reports, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current
reports on Form 8-K, registration statements, press releases and other communications. Except as
required by law, the company undertakes no obligation to update or revise forward-looking
statements to reflect changed assumptions, the occurrence of unanticipated events or changes to
future operating results over time.
HanesBrands
HanesBrands (NYSE:HBI) is a socially responsible leading marketer of everyday basic apparel under
some of the worlds strongest apparel brands, including Hanes, Champion, Playtex, Bali, JMS/Just My
Size, barely there, Wonderbra and Gear For Sports. The company sells T-shirts, bras, panties, mens
underwear, childrens underwear, socks, hosiery, casualwear and activewear produced in the
companys low-cost global supply chain. Hanes has more than 50,000 employees in more than 25
countries and takes pride in its strong reputation for ethical business practices. More information
about the company and its corporate social responsibility initiatives, including environmental,
social compliance and community improvement achievements, may be found on the Hanes corporate
website at www.hanesbrands.com. Hanes is a U.S. Environmental Protection Agency 2010 Energy Star
Partner of the Year and ranks No. 91 on Newsweek magazines list of Top 500 greenest U.S.
companies.
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