Gildan Activewear Announces Closing of 5-Year US$800 Million Amended Bank Credit Facility
June 30 2011 - 2:03PM
Marketwired
Gildan Activewear Inc. (TSX: GIL)(NYSE: GIL) today announced that
it has increased its existing unsecured revolving bank credit
facility to US$800 million from US$400 million and has extended the
maturity date to June 2016 from June 2013. As previously disclosed,
the Company utilized approximately US$250 million of its bank
facility to finance its acquisition of Gold Toe Moretz Holdings
Corp. in April 2011. The increase in the amount of the facility is
intended to provide the Company with continuing financing
flexibility, primarily to be able to respond to potential future
acquisition opportunities which complement its organic growth
strategy.
The interest rate for drawn amounts under the facility is based
on the underlying banker's acceptance or LIBOR rate plus 125 to 200
basis points depending on Gildan's debt leverage. Based on the
current LIBOR rate, this translates into a floating interest rate
of 1.45%. However, the Company has entered into a series of
floating-to-fixed interest rate swaps totaling US$100 million for a
term of 5 years. The interest rate on the swapped debt is fixed at
3.12%.
The transaction was led by BMO Capital Markets ("BMO") and
Canadian Imperial Bank of Commerce ("CIBC") as Co-Lead Arrangers.
Joint Book Runners were BMO, CIBC and JPMorgan Chase Bank. The
banking syndicate also comprises TD Bank Financial Group, Bank of
America, N.A., Bank of Nova Scotia, Royal Bank of Canada, HSBC Bank
Canada and BNP Paribas Bank.
About Gildan
Gildan is a vertically-integrated marketer and globally low-cost
manufacturer of quality branded basic apparel. Gildan® is the
leading activewear brand in the screenprint market in the U.S. and
Canada. The brand is continuing to grow in Europe, Mexico and the
Asia-Pacific region. The Company sells T-shirts, sport shirts and
fleece as undecorated "blanks", which are subsequently decorated by
screenprinters with designs and logos. The Company is also one of
the world's largest suppliers of branded and private label
athletic, casual and dress socks sold to a broad spectrum of
retailers in the U.S. Gildan markets its sock products under a
diversified portfolio of company-owned brands, including Gold Toe®,
PowerSox®, SilverToe®, Auro®, All Pro®, GT®, and the Gildan® brand.
The Company is also the exclusive U.S. sock licensee to the Under
Armour® and New Balance® brands. In addition to socks, the Company
is increasingly becoming a significant supplier of underwear and
undecorated activewear products in the retail channel. With over
29,000 employees worldwide, Gildan owns and operates highly
efficient, large-scale, environmentally and socially responsible
facilities in Central America and the Caribbean Basin and has begun
the development of a manufacturing hub in Bangladesh to support its
planned growth in Asia and Europe. More information on the Company
can be found on Gildan's website at www.gildan.com.
Contacts: Investor Relations Laurence G. Sellyn, Executive
Vice-President, Chief Financial and Administrative Officer (514)
343-8805 lsellyn@gildan.com Sophie Argiriou, Director, Investor
Communications (514) 343-8815 sargiriou@gildan.com Media Relations
Stephanie Gaucher, Corporate Communications (514) 343-8811
sgaucher@gildan.com
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