This excerpt taken from the GFSI DEF 14A filed Nov 17, 2005.
Interests of Lightyear PBI Holdings in the Merger
We intend to fund the merger with a combination of cash on hand and debt. Unless we obtain an alternative source of financing before closing the merger, the debt will be in the form of a loan from Lightyear PBI Holdings. If Lightyear PBI Holdings provides financing for the merger, it will receive warrants to purchase our common stock and, if requested by a special committee of our disinterested directors, it will receive Series A preferred stock and warrants in lieu of the 2006 cash dividends on its Series A preferred stock. Under this arrangement, Lightyear PBI Holdings would receive 1,894 shares of our Series A preferred stock plus warrants that are exercisable for 1,515,152 shares of our common stock at an exercise price of $1.32 per share. Lightyear PBI Holdings has indicated that it also will consider accepting payment of the 2006 cash dividends in kind rather than in cash as described above in connection with an alternative third party financing. See Financing for the Merger on page 22, Proposal 2 on page 52, and Proposal 3 on page 54.