HanesBrands to redeem $150 mln of its debt in 2012

As part of plans to pay off its approximately $300 million

of floating-rate bond debt in 2012, HanesBrands declared that it aims to redeem in July $150 million of its Floating Rate Senior Notes due 2014 through free cash flow in 2012 and 2013.

“Free cash flow is tracking to our plans, and we are taking the opportunity to begin the reduction of floating-rate debt a little earlier than originally planned this year. We are using our strong capital structure and operating results to deleverage our balance sheet consistent with our strong free cash flow,” said Hanes Chief Financial Officer Richard D. Moss.

On July 12, 2012, Hanes has issued a notice of redemption pursuant to the indenture for the Floating Rate Notes due 2014 at a redemption price equal to 100 percent of the principal amount of the Notes, including interest accrued and unpaid to the redemption date. After this redemption, the outstanding principal amount of Floating Rate Notes will be $147,055,000. In addition to expectations to pay off the approximately $300 million in floating rate notes in 2012, the company’s goal is to pay off its $500 million of 8 percent notes in 2013, reducing bond debt to approximately $1 billion.

HanesBrands is a clothing company based in US which owns brands including Hanes, Champion, Playtex, Bali, JMS/Just My Size, barely there, Wonderbra and Gear For Sports. The company sells T-shirts, bras, panties, men’s underwear, children’s underwear, socks, hosiery, casualwear and activewear produced in the company’s low-cost global supply chain.