Gildan Activewear Announces Pricing of $1.2 Billion Senior Unsecured Notes Offering

Gildan Activewear Inc. has priced a $1.2 billion private offering of senior unsecured notes, with proceeds to fund the acquisition of Hanesbrands Inc. and refinance Hanesbrands' existing debt. The notes have a 4.7% interest rate for a 2030 maturity and a 5.4% rate for a 2035 maturity. The offering is expected to close on October 7, 2025, subject to customary conditions.

Gildan Activewear Inc. (GIL: TSX and NYSE) has priced a $1.2 billion private offering of senior unsecured notes, with proceeds to fund the acquisition of Hanesbrands Inc. and refinance Hanesbrands' existing debt. The notes have a 4.7% interest rate for a 2030 maturity and a 5.4% rate for a 2035 maturity. The offering is expected to close on October 7, 2025, subject to customary conditions.

The company is offering the notes in two series: $600 million of 4.700% notes due October 7, 2030, and $600 million of 5.400% notes due October 7, 2035. The proceeds will be used to fund the cash portion of the Hanesbrands acquisition, refinance Hanesbrands' existing debt, and cover related transaction fees. The notes will be offered to qualified institutional buyers under Rule 144A and to certain non-U.S. persons under Regulation S.

This debt structure reveals a thoughtful financial strategy with staggered maturities to manage refinancing risk. The 0.7% spread between the two tranches indicates investors demand modest additional compensation for the longer commitment period. The interest rates reflect current market conditions for 5-year and 10-year corporate debt, suggesting Gildan secured reasonable financing terms without excessive risk premiums.

The private placement approach allows Gildan to avoid the extensive disclosure and time requirements of public registration, enabling faster execution of the Hanesbrands acquisition. This suggests management prioritizes transaction speed and efficiency in what appears to be a transformative acquisition for the company's market position.

The acquisition of Hanesbrands marks a significant industry consolidation play between two major apparel manufacturers. Gildan has maintained equal ranking with its existing unsecured debt, avoiding subordination complexities that would concern existing creditors. The company has priced a $1.2 billion senior unsecured notes offering split evenly between two series: $600 million at 4.700% due 2030 and $600 million at 5.400% due 2035. This debt structure reveals a thoughtful financial strategy with staggered maturities to manage refinancing risk.