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Levi’s Prices $140 Million in Notes

Funds to be used to prepay senior term loan due in April 2014.

Levi Strauss & Co. has priced $140 million of its senior notes due in 2022 as it looks to prepay a senior term loan of $325 million due in April 2014.

Levi’s said it would use proceeds from the private placement in combination with cash on hand and borrowings under its senior revolving credit facility to prepay the term loan.

The pricing was at 108 percent of the principal amount of the notes, plus accrued interest from Nov. 1 to the closing date in 2022. The notes are part of a series issued by the company last May and bear interest at a rate of 6.875 percent. Upon completion of the offering, the principal amount of the 2022 notes that will be outstanding will be $525 million.

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As of Nov. 25, Levi’s long-term debt, including the senior term loan and 6.875 percent notes, stood at $1.67 billion, all of it unsecured. A year earlier, long-term debt was $1.82 billion, with a $100 million senior revolver the only secured portion of the total.

San Francisco-based Levi’s expects to report first-quarter financial results on April 9.