Hanesbrands (HBI)

 

We believe our financing structure provides a secure base to support our ongoing operations and key business strategies.

 

In November 2007, Standard & Poor’s Ratings Services raised its outlook to ‘positive’ from ‘stable’ and affirmed its ‘B+’ corporate credit rating for us. Standard & Poor’s stated that the revision reflects the positive momentum since the spin off from Sara Lee on September 5, 2006 and also stated that our credit protection measures and operating results are in line with Standard & Poor’s expectations.

 

In connection with the spin off, on September 5, 2006, we entered into the $2.15 billion Senior Secured Credit Facility which includes a $500 million revolving loan facility, or the “Revolving Loan Facility,” that was undrawn at the time of the spin off, the $450 million Second Lien Credit Facility and the $500 million Bridge Loan Facility. As a result of this debt incurrence, the amount of interest expense increased significantly in periods after the spin off. We paid $2.4 billion of the proceeds of these borrowings to Sara Lee in connection with the consummation of the spin off. As of December 29, 2007, we had $430 million of borrowing availability under the Revolving Loan Facilty after taking into account outstanding letters of credit. The Bridge Loan Facility was paid off in full through the issuance of the $500 million of Floating Rate Senior Notes issued in December 2006. On November 27, 2007, we entered into the Receivables Facility which provides for up to $250 million in funding accounted for as a secured borrowing, limited to the availability of eligible receivables, and is secured by certain domestic trade receivables. The proceeds from the Receivables Facility were used to pay off a portion of the Senior Secured Credit Facility.

 

 

We believe our financing structure provides a secure base to
support our ongoing operations and key business strategies.

 

In November 2007, Standard & Poor’s Ratings
Services raised its outlook to ‘positive’ from
‘stable’ and affirmed its ‘B+’ corporate
credit rating for us. Standard & Poor’s stated
that the revision reflects the positive momentum since the spin
off from Sara Lee on September 5, 2006 and also stated that
our credit protection measures and operating results are in line
with Standard & Poor’s expectations.

 

In connection with the spin off, on September 5, 2006, we
entered into the $2.15 billion Senior Secured Credit
Facility which includes a $500 million revolving loan
facility, or the “Revolving Loan Facility,” that was
undrawn at the time of the spin off, the $450 million
Second Lien Credit Facility and the $500 million Bridge
Loan Facility. As a result of this debt incurrence, the amount
of interest expense increased significantly in periods after the
spin off. We paid $2.4 billion of the proceeds of these
borrowings to Sara Lee in connection with the consummation of
the spin off. As of December 29, 2007, we had
$430 million of borrowing availability under the Revolving
Loan Facilty after taking into account outstanding letters of
credit. The Bridge Loan Facility was paid off in full through
the issuance of the $500 million of Floating Rate Senior
Notes issued in December 2006. On November 27, 2007, we
entered into the Receivables Facility which provides for up to
$250 million in funding accounted for as a secured
borrowing, limited to the availability of eligible receivables,
and is secured by certain domestic trade receivables. The
proceeds from the Receivables Facility were used to pay off a
portion of the Senior Secured Credit Facility.