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Levi Strauss & Co. Announces the Redemption of Senior Notes Due 2025
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
Levi Strauss & Co. (NYSE: LEVI) will redeem its entire $200 million outstanding 5.00% Senior Notes due 2025 on September 30, 2021. The redemption price is set at 101.667% of the principal amount, along with any accrued interest. This strategic move will save the company approximately $10 million annually in interest expenses. The funding for the redemption will come from cash on hand, and the company reports solid liquidity, allowing it to return gross debt levels to pre-pandemic status.
Positive
Redemption of $200 million in Senior Notes will reduce annual interest expenses by $10 million.
The company maintains strong cash flow and liquidity, enabling investments and dividend returns to pre-pandemic levels.
Negative
None.
SAN FRANCISCO--(BUSINESS WIRE)--
Levi Strauss & Co. (NYSE: LEVI) announced today that it will redeem the entire outstanding principal amount of its 5.00% Senior Notes due 2025 (the “Notes”). The redemption date for the Notes is September 30, 2021.
The aggregate principal amount of the Notes outstanding is $200 million. The redemption price for the Notes will consist of 101.667% of the principal amount of the Notes outstanding, plus accrued and unpaid interest on the Notes, if any, up to, but excluding, the redemption date. The company plans to use cash on hand to fund the redemption of the Notes.
"Our ability to generate strong cash flow has enabled the company to both invest in our organic business and fund our recently announced acquisition, as well as return dividends to pre-pandemic levels,” said Harmit Singh, chief financial officer of Levi Strauss & Co. “Even after these uses of capital, liquidity remains solid and we will now comfortably repay the remaining $200 million of our 5% Notes, which will take our gross debt back to pre-pandemic levels.”
Redemption of these Notes will save the company approximately $10 million annually in interest expense.
A notice of redemption is being sent to all currently registered holders of the Notes by the Trustee, Wells Fargo Bank, National Association.
This press release is not an offer to sell or a solicitation of an offer to buy any securities.
About Levi Strauss & Co.
Levi Strauss & Co. is one of the world's largest brand-name apparel companies and a global leader in jeanswear. The company designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's®, Dockers®, Signature by Levi Strauss & Co.™, and Denizen® brands. Its products are sold in more than 110 countries worldwide through a combination of chain retailers, department stores, online sites, and a global footprint of approximately 3,000 retail stores and shop-in-shops. Levi Strauss & Co.'s reported 2020 net revenues were $4.5 billion. For more information, go to http://levistrauss.com, and for company news and announcements go to http://investors.levistrauss.com.
