Fashion

PVH refinances senior credit facilities


PVH, the holding company of brands including Calvin Klein and Tommy
Hilfiger, has announced that it has refinanced its previously outstanding
senior secured credit facilities using the proceeds from new senior
unsecured credit facilities and cash on hand. The new credit facilities are
senior unsecured obligations of PVH Corp. and contain operating covenants
that are typical for an investment grade rated borrower. In addition, under
the new credit facilities, PVH Corp.’s overall interest expense is expected
to be lower.

The new credit facilities provide for an approximately 1.093 billion dollar
U.S. dollar-denominated Term Loan A facility, a 500 million euro
denominated Term Loan A facility and senior secured revolving credit
facilities with availability in an aggregate amount of approximately 1
billion dollars (including a U.S. dollar facility, a Euro denominated
multi-currency facility, a Canadian Dollar facility and a Hong Kong Dollar
facility). The new Term Loan A facility and the new revolving credit
facilities will mature in May 2024 (effectively a three year extension of
the maturity date under PVH Corp.’s previously outstanding credit
facilities).

PVH is also currently in the middle of turning around Calvin Klein. After
less than stellar fiscal 2018 results, the company ended former creative
director Raf Simon’ contract early, and is shuttering their high fashion
205W39NYC label. The company intends to focus the brand’s business on jeans
and underwear going forward.



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