Hanesbrands' ratings unaffected by term loan upsize, says Moody's

Published 02/20/2025, 10:20 AM
© Reuters.

Investing.com -- Moody's (NYSE:MCO) Ratings has confirmed that the ratings and stable outlook of Hanesbrands (NYSE:HBI) Inc. are not influenced by the increase in the proposed senior secured Term Loan B to $1.1 billion, up from the earlier considered $600 million.

Hanesbrands' B1 corporate family rating and B1-PD probability of default rating remain untouched, as the upsized Term Loan B will be utilized to repay existing debt, maintaining its leverage neutrality. Moody's also expressed a positive view of the proposed transaction's ability to extend the company's maturities.

The Ba2 ratings on Hanesbrands' new senior secured bank credit facilities, which include its new 5-year $750 million revolving credit facility, new 5-year $400 million Term Loan A, and 7-year $1.1 billion Term Loan B, remain constant. The B3 senior unsecured rating of Hanesbrands also stays unchanged.

The proceeds from the newly proposed facilities will be used to pay off Hanesbrands' existing senior secured Term Loan A due in 2026, Term Loan B due in 2030, and the company's existing 4.875% senior unsecured notes due in 2026. The Ba2 ratings on the existing senior secured bank credit facilities and B3 rating on the 2026 senior unsecured notes will be withdrawn when the transaction closes.

Hanesbrands Inc., based in Winston-Salem, North Carolina, produces and distributes basic apparel products under brands such as Hanes, Maidenform, Bali, Bonds, and Playtex. The company's revenue for the business moving forward following the sale of Champion was approximately $3.5 billion for the 12 months ending on December 31, 2024.

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