US: Hanesbrands looks to reduce debt levels
US apparel maker Hanesbrands has set a goal to reduce its long-term debt in 2009 by at least US$300m.
The company has also successfully amended its first-lien credit agreement with debt holders. It applies to the company's $990m of Term Loans A and B as well as its revolving credit facility.
"We had a very positive response to our credit amendment, approved by an overwhelming majority of debt holders," chairman and chief executive officer Richard A Noll said.
"Resolving this issue puts us in good position to navigate this uncertain economic environment."
With a new interest-rate structure, the company expects net interest expense for 2009 to be $165m, compared with $155m in 2008.
Hanesbrands' debt reduction will be through cost reductions, product price increases, second-half commodity-cost benefits, reduced capital-expenditure needs and plans to reduce inventory.
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