HanesBrands announced that it is proactively drawing down on its revolving credit facility as a precautionary measure to increase balance sheet flexibility during the coronavirus global pandemic.

The company also is withdrawing its guidance for the 2020 first-quarter and full-year.

The company is drawing down $630 million from its U.S. revolving loan facility to further strengthen its cash position, which will provide the company with the additional financial flexibility to manage its business with a safety-first emphasis during the unknown duration and impact of the COVID-19 outbreak.

With the drawdown, HanesBrands expects to have approximately $1 billion of cash on hand.

The measures and precautions being taken by governments, retail partners and consumers in countries across the world to limit the spread of COVID-19 are having a significant impact on the economic activity in each region of the company’s global business.

HanesBrands continues to monitor and adjust its business plans as necessary, including taking actions to protect employees, manage liquidity, reduce expenses, and serve customers and consumers.

HanesBrands issued first-quarter and full-year 2020 guidance on February 7, 2020, which excluded any impact from the spread of COVID-19. Due to the uncertainty and rapidly changing environment relating to the disease, the company is withdrawing the guidance for the first-quarter and full-year and is not providing an updated outlook at this time. The company expects to provide more information when it reports first-quarter earnings in May.

With operations dating to 1901, the company has successfully navigated a number of challenging business and economic environments in its history. Given its strong portfolio of leading brands of everyday basic apparel products, its strong balance sheet and diversified business model, Hanesbrands believes it is well-positioned for long-term success as it manages through this latest challenge.

Photo courtesy Hanes Brands