HanesBrands Raises 2013 EPS Outlook
Company to Prepay Half of its $500 Million 8% Notes a Year Earlier Than Planned by Using Make-whole Provision
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HanesBrands%20Inc.<%2Fa>%20on%20November%2029%20announced%20that%20it%20will%20use%20its%20strong%20cash%20position%20to%20reduce%20long-term%20debt%20this%20year%20by%20another%20$250%20million%20and%20reduce%20interest%20expense%20in%202013%20by%20prepaying%20half%20of%20its%20$500%20million%20of%208%20percent%20senior%20notes,%20due%202016,%20a%20year%20earlier%20than%20originally%20anticipated.%0D%0A%0D%0Ahttps%3A%2F%2Fwww.printandpromomarketing.com%2Farticle%2Fhanesbrands-raises-2013-eps-outlook%2F" target="_blank" class="email" data-post-id="4986" type="icon_link">
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By using a make-whole provision that is part of the bond indenture, the company has determined that it can prepay its 8 percent notes now with no additional interest and call premiums than if it waited to retire the bonds in December 2013.
“We have a substantial amount of cash on hand now as a result of strong cash flow in 2012, we are committed to reducing our debt and we have determined there is no benefit or need to wait to start prepaying our 8 percent notes,” Hanes chairman and CEO Richard A. Noll said. “With this debt payment, the era of being a highly leveraged company is a thing of the past.”
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