PVH sets pricing for $600 million two-part add-on loans

By Paul A. Harris

Portland, Ore., Feb. 21 - Apparel company PVH set pricing for an add-on term loan A and an incremental term loan B on Friday, according to a market source.

A $400 million non-fungible add-on to the incremental term loan B has a 250 basis points Libor spread at 99.75, and a 0.75% Libor floor, the same as the existing loan. There is a six-month soft call at 101.

A $200 million fungible add-on to the term loan A and $750 million of multi-currency revolvers, all due on due Feb. 13, 2018, are talked at Libor plus 175 bps, subject to a pricing grid, with 25 bps upfront, are all callable at par.

The revolvers and term loan A are being extended by one year, to Feb. 13, 2019, in exchange for a 10 bps extension fee.

Commitments and amendment consents are due by March 7.

Barclays is the lead left bookrunner. BofA Merrill Lynch, Citigroup Global Markets and RBC Capital Markets are joint bookrunners.

The existing facilities include a $1,636,000,000 term loan A and a $939 million term loan B.

The U.S. borrower is PVH Corp. The European borrower is PVH BV.

The existing ratings for the loans are Ba2 from Moody's Investors Service and BB+ from Standard & Poor's.

The existing covenants include a minimum consolidated interest coverage covenant and a maximum consolidated total net leverage covenant.

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