PVH, the holding company of brands including Calvin Klein and Tommy Hilfiger, has announced that it has refinanced its previously outstanding senior secured credit facilities using the proceeds from new senior unsecured credit facilities and cash on hand. The new credit facilities are senior unsecured obligations of PVH Corp. and contain operating covenants that are typical for an investment grade rated borrower. In addition, under the new credit facilities, PVH Corp.’s overall interest expense is expected to be lower.

The new credit facilities provide for an approximately 1.093 billion dollar U.S. dollar-denominated Term Loan A facility, a 500 million euro denominated Term Loan A facility and senior secured revolving credit facilities with availability in an aggregate amount of approximately 1 billion dollars (including a U.S. dollar facility, a Euro denominated multi-currency facility, a Canadian Dollar facility and a Hong Kong Dollar facility). The new Term Loan A facility and the new revolving credit facilities will mature in May 2024 (effectively a three year extension of the maturity date under PVH Corp.’s previously outstanding credit facilities).

PVH is also currently in the middle of turning around Calvin Klein. After less than stellar fiscal 2018 results, the company ended former creative director Raf Simon' contract early, and is shuttering their high fashion 205W39NYC label. The company intends to focus the brand's business on jeans and underwear going forward.

 

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