Jeans giant Levi Strauss & Co on Tuesday sold $425 million of junk bonds and said it would use $115m of that sum to pay off all amounts borrowed under a $727m credit facility maturing in August 2003.

The San Francisco-based company said in a statement it plans to use remaining proceeds either to pay down some of its $350m of 6.8 per cent notes maturing in November 2003, or pay down other debt, or for working capital or general corporate purposes.