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Hanesbrands plans to redeem $250 million of 8% notes on Dec. 27
By Marisa Wong
Madison, Wis., Nov. 30 - Hanesbrands Inc. said it intends to redeem $250 million principal amount of its $500 million 8% senior notes due 2016.
Hanesbrands will redeem the notes on Dec. 27 at par plus a call premium of about $28 million. The premium consists of the discounted present value of all required interest payments that would otherwise be due on the redeemed portion of the notes from the redemption date to Dec. 15, 2013 and a 4% prepayment penalty.
The company expects to incur a charge of about $34 million in the fourth quarter of 2012 for the call premium and acceleration of non-cash unamortized debt costs.
The prepayment of the notes will reduce interest expense for 2013, although a resulting higher tax rate will partially offset the benefits, the company said.
Following the redemption, $250 million of the 8% notes will remain outstanding.
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