Gildan Activewear, Inc. has priced an inaugural offering of CN$700 million aggregate principal amount of senior unsecured notes in two series (Notes), consisting of CN$500 million aggregate principal amount of 4.362 percent senior unsecured notes, Series 1, due 2029 (2029 Notes) and CN$200 million aggregate principal amount of 4.711 percent senior unsecured notes, Series 2, due 2031 (2031 Notes).
Gildan reports in Canadian dollars (CN$) currency.
The 2029 Notes will be issued at par and bear interest at a rate of 4.362 percent per annum, payable semi-annually until maturity on May 22 and November 22 of each year, commencing on May 22, 2025. The 2031 Notes will be issued at par and bear interest at a rate of 4.711 percent per annum, payable semi-annually until maturity on May 22 and November 22 of each year, commencing on May 22, 2025.
The company intends to use the net proceeds of the offering to repay the indebtedness outstanding under its credit facilities and for other general corporate purposes.
The Notes are being offered through an agency syndicate comprising BMO Capital Markets, CIBC Capital Markets and Scotiabank, as joint bookrunners, and 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 and will rank pari passu to all existing and future senior unsecured and unsubordinated indebtedness of the company. DBRS Limited has assigned the notes a provisional rating of BBB, with a stable trend, and they are being offered in Canada on a private placement basis in reliance upon exemptions from the prospectus requirements under applicable securities legislation.
Image courtesy Gildan Activewear, Inc.
