Gildan Announces Private Offering of C$700 Million Senior Unsecured Notes
Gildan Activewear announced pricing of a C$700 million senior unsecured notes offering in two series: C$500 million of 4.362% notes due 2029 and C$200 million of 4.711% notes due 2031. Both series will be issued at par with semi-annual interest payments starting May 22, 2025. The proceeds will be used to repay existing credit facilities and for general corporate purposes. The notes, rated BBB with stable trend by DBRS , will be offered through a syndicate led by BMO Capital Markets, CIBC Capital Markets, and Scotiabank. The offering is expected to close around November 22, 2024.
Gildan Activewear ha annunciato la prezziatura di un'offerta di note senior non garantite da C$700 milioni suddivisa in due serie: C$500 milioni di note al 4.362% in scadenza nel 2029 e C$200 milioni di note al 4.711% in scadenza nel 2031. Entrambe le serie saranno emesse a pari con pagamenti di interessi semestrali a partire dal 22 maggio 2025. I proventi saranno utilizzati per rimborsare le linee di credito esistenti e per fini aziendali generali. Le note, valutate BBB con trend stabile da DBRS, saranno offerte tramite un sindacato guidato da BMO Capital Markets, CIBC Capital Markets e Scotiabank. L'emissione è prevista per chiudersi intorno al 22 novembre 2024.
Gildan Activewear anunció el precio de una oferta de notas senior no garantizadas por C$700 millones en dos series: C$500 millones de notas al 4.362% que vencen en 2029 y C$200 millones de notas al 4.711% que vencen en 2031. Ambas series se emitirán a la par con pagos de intereses semestrales a partir del 22 de mayo de 2025. Los ingresos se utilizarán para reembolsar las líneas de crédito existentes y para fines corporativos generales. Las notas, calificadas como BBB con tendencia estable por DBRS, se ofrecerán a través de un sindicato liderado por BMO Capital Markets, CIBC Capital Markets y Scotiabank. Se espera que la oferta finalice alrededor del 22 de noviembre de 2024.
길단 액티브웨어(Gildan Activewear)는 7억 캐나다 달러 규모의 선순위 무담보 노트 발행 가격을 발표했습니다. 두 가지 시리즈로 구성되어 있으며: 5억 캐나다 달러의 4.362% 노트가 2029년에 만기가 되고, 2억 캐나다 달러의 4.711% 노트는 2031년에 만기가 됩니다. 두 시리즈 모두 정가로 발행되며, 2025년 5월 22일부터 반기 이자 지급이 시작됩니다. 수익금은 기존 신용 시설 상환 및 일반 기업 용도로 사용될 예정입니다. DBRS에 의해 안정적인 추세로 BBB 등급을 받은 이 노트는 BMO 캐피탈 마켓, CIBC 캐피탈 마켓 및 스코샤뱅크가 이끄는 신디케이트를 통해 제공됩니다. 이 발행은 2024년 11월 22일경에 마감될 것으로 예상됩니다.
Gildan Activewear a annoncé la tarification d'une offre de 700 millions de dollars canadiens de billets senior non garantis répartis en deux séries : 500 millions de dollars canadiens de billets à 4,362% arrivant à échéance en 2029 et 200 millions de dollars canadiens de billets à 4,711% arrivant à échéance en 2031. Les deux séries seront émises à parité, avec des paiements d'intérêts semestriels débutant le 22 mai 2025. Les produits seront utilisés pour rembourser des facilités de crédit existantes et pour des fins générales d'entreprise. Les billets, notés BBB avec une tendance stable par DBRS, seront offerts par un syndicat dirigé par BMO Capital Markets, CIBC Capital Markets et Scotiabank. L'offre devrait se clôturer vers le 22 novembre 2024.
Gildan Activewear hat die Preisgestaltung für ein Angebot von 700 Millionen C$ an unbesicherten Senior-Anleihen in zwei Serien bekanntgegeben: 500 Millionen C$ von Anleihen mit 4,362% Fälligkeit im Jahr 2029 und 200 Millionen C$ von Anleihen mit 4,711% Fälligkeit im Jahr 2031. Beide Serien werden zu pari ausgegeben, mit halbjährlichen Zinszahlungen, die am 22. Mai 2025 beginnen. Die Erlöse werden verwendet, um bestehende Kreditfazilitäten zurückzuzahlen und für allgemeine Unternehmenszwecke. Die Anleihen, die von DBRS mit BBB und stabilem Trend bewertet wurden, werden über ein Syndikat angeboten, das von BMO Capital Markets, CIBC Capital Markets und Scotiabank geleitet wird. Das Angebot wird voraussichtlich am 22. November 2024 abgeschlossen.
- BBB investment-grade rating with stable trend from DBRS
- Successful debt restructuring through notes offering
- Diversification of funding sources through inaugural notes offering
- Increased interest expense with rates of 4.362% and 4.711%
- Additional long-term debt obligation of C$700 million
Insights
This
The refinancing of existing credit facilities with these notes could potentially lower the company's overall borrowing costs and extend debt maturities. The private placement approach typically offers more flexible terms compared to public offerings. The strong syndicate of major banks signals robust institutional interest. This debt restructuring maintains Gildan's financial flexibility while potentially optimizing its capital structure.
MONTREAL, Nov. 21, 2024 (GLOBE NEWSWIRE) -- Gildan Activewear Inc. (GIL: TSX and NYSE) (“Gildan” or the “Company”) announced today that it has priced an inaugural offering of C
The 2029 Notes will be issued at par and bear interest at a rate of
The Company intends to use the net proceeds of the offering for the repayment of indebtedness outstanding under its credit facilities and other general corporate purposes.
The Notes are being offered through an agency syndicate consisting of BMO Capital Markets, CIBC Capital Markets and Scotiabank, as joint bookrunners, along with J.P. Morgan, TD Securities, BofA Securities and RBC Capital Markets, as co-managers. The offering is expected to close on or about November 22, 2024, subject to customary closing conditions.
The Notes will be senior unsecured obligations of the Company, will rank pari passu to all existing and future senior unsecured and unsubordinated indebtedness of the Company. The Notes have been assigned a provisional rating of BBB, with a stable trend, by DBRS Limited, and are being offered in Canada on a private placement basis in reliance upon exemptions from the prospectus requirements under applicable securities legislation.
The Notes have not been and will not be qualified for sale to the public under applicable securities laws in Canada and, accordingly, any offer and sale of the Notes in Canada will be made on a basis which is exempt from the prospectus requirements of such securities laws. The Notes have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities law, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States or its territories or possessions or to, or for the account or benefit of, U.S. persons (as such terms are defined in Regulation S under the U.S. Securities Act).
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer to sell or a solicitation of an offer to buy the Notes in any jurisdiction where it is unlawful to do so.
Caution Concerning Forward-Looking Statements
Certain statements included in this press release constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities legislation and regulations and are subject to important risks, uncertainties, and assumptions. This forward-looking information includes, amongst others, statements relating to the timing and completion of the proposed offering of the Notes, the expected use of the net proceeds of the offering, the credit ratings assigned, and any other future events or developments described herein. Forward-looking statements generally can be identified by the use of conditional or forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “project,” “assume,” “anticipate,” “plan,” “foresee,” “believe,” or “continue,” or the negatives of these terms or variations of them or similar terminology. Refer to the Company’s filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission, as well as the risks described under the “Financial risk management”, “Critical accounting estimates and judgments,” and “Risks and uncertainties” sections of the Company’s most recent Management’s Discussion and Analysis for the year ended December 31, 2023 (“FY2023 MD&A”) for a discussion of the various factors that may affect these forward-looking statements. Material factors and assumptions that were applied in drawing a conclusion or making a forecast or projection are also set out throughout such document.
Forward-looking information is inherently uncertain and the results or events predicted in such forward-looking information may differ materially from actual results or events. Material factors, which could cause actual results or events to differ materially from a conclusion, forecast, or projection in such forward-looking information, include, but are not limited to changes in general economic, financial or geopolitical conditions globally or in one or more of the markets Gildan serves, including the pricing and inflationary environment, and Gildan’s ability to implement its growth strategies and plans, as well as those factors listed in the FY2023 MD&A under the “Risks and uncertainties” section and “Caution regarding forward-looking statements” sections. These factors may cause the Company’s actual performance in future periods to differ materially from any estimates or projections of future performance expressed or implied by the forward-looking statements included in this press release. There can be no assurance that the expectations represented by the Company’s forward-looking statements will prove to be correct. The purpose of the forward-looking statements is to provide the reader with a description of management’s expectations regarding the proposed offering of Notes and other future events and may not be appropriate for other purposes. Furthermore, unless otherwise stated, the forward-looking statements contained in this press release are made as of the date of this press release, and Gildan does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events, or otherwise unless required by applicable legislation or regulation. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
About Gildan
Gildan is a leading manufacturer of everyday basic apparel. The Company’s product offering includes activewear, underwear and socks, sold to a broad range of customers, including wholesale distributors, screenprinters or embellishers, as well as to retailers that sell to consumers through their physical stores and/or e-commerce platforms and to global lifestyle brand companies. The Company markets its products in North America, Europe, Asia Pacific, and Latin America, under a diversified portfolio of Company-owned brands including Gildan®, American Apparel®, Comfort Colors®, GOLDTOE® and Peds®.
Gildan owns and operates vertically integrated, large-scale manufacturing facilities which are primarily located in Central America, the Caribbean, North America, and Bangladesh. Gildan operates with a strong commitment to industry-leading labour, environmental and governance practices throughout its supply chain in accordance with its comprehensive ESG program embedded in the Company's long-term business strategy. More information about the Company and its ESG practices and initiatives can be found at www.gildancorp.com.
For further information:
| Investor Inquiries | Media Inquiries |
| Jessy Hayem, CFA Senior Vice-President, Head of Investor Relations and Global Communications (514) 744-8511 jhayem@gildan.com | Genevieve Gosselin Director, Global Communications and Corporate Marketing (514) 343-8814 communications@gildan.com |
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