LEVI’S PAYS OFF $500M OF ITS DEBT WITH NOTES
NEW YORK — Levi Strauss & Co. on Thursday said it had made a $500 million step forward in paying down its debts.
The San Francisco-based company said it had completed its offering of $500 million in 11 5/8 percent senior notes due 2008. That money went to pay down the firm’s bank debt.
As a result, Levi’s was also able to reduce the size of its new senior secured credit facility to $1.05 billion. As reported, in late December, the company said it had worked out an arrangement with the Bank of America, Citicorp and the Bank of Nova Scotia for a $1.5 billion credit line.
The successful bond offering made such a large credit facility unnecessary, so the lenders agreed to bring the line down $495 million, the company said.
The new secured line also has lower costs than Levi’s previous line, the company said.
“The combination of these two transactions significantly improves our capital structure,” said chief financial officer Bill Chiasson, in a statement. “Under our business turnaround plan, we will continue to deploy our strong cash flow toward further debt reduction.”