Perry Ellis International, Inc. has completed the redemption of $100 million of its 7.875 percent senior subordinated notes. As a result of this transaction, and assuming no material change in prevailing interest rates, the company expects to lower interest expense by approximately $4.5 million in fiscal 2016. As such, the company now expects fiscal 2016 adjusted earnings per share in a range of $1.45 to $1.55, which increased from $1.25 to $1.35, to reflect the benefits from this transaction.

Coincident with this redemption, the company has amended its revolving credit facility to increase the maximum principal amount to $200 million as well as to extend the facility expiration to April 30, 2020. The company utilized the senior credit facility to redeem the senior notes. Following the redemption, $50 million of the senior notes remain outstanding.

George Feldenkreis, Chairman and CEO, commented: “The strong financial condition of the company has allowed us to take advantage of this opportunity to adjust our capital structure and to reduce our overall cost of capital. We have been managing our working capital very efficiently and last year generated $55 million in net cash from operations. We are committed to maintaining our solid financial foundation that provides us with the flexibility to invest in our growth and produce increased cash flow for the benefit of our shareholders.”

The terms of the senior notes provided for the payment of the redemption premium of 103.938 percent for the principal amount redeemed. The company incurred debt extinguishment costs of approximately $5.2 million in connection with this redemption, including the redemption premium as well as the write-off of bond issue costs. These costs are excluded from the company's adjusted earnings per share guidance