VAN NUYS, Calif. — Authentic Fitness Corp. said it plans to refinance $100 million in debt in a move expected to realize annual savings of $800,000, or 5 cents a share.
The new debt will carry an interest rate of the London Interbank Offering Rate (LIBOR) plus 1 percent, compared with LIBOR plus 2.5 percent on the old debt.
The new facility is being underwritten by Citicorp U.S.A., a subsidiary of Citibank N.A.; The Bank of Nova Scotia, and Chemical Bank.
In the most recent fiscal year, ended July 3, Authentic Fitness — which makes swimwear, activewear and skiwear — earned $9.8 million, or 1.12 a share, on sales of $132.9 million.
