Gildan Announces $1.2B Private Placement of Unsecured Bonds

Gildan Apparel has priced a private placement of $1.2 billion unsecured debt, consisting of two tranches: 4.7% senior unsecured notes due 2030 and 5.4% senior unsecured notes due 2035. The proceeds will be used to fund the cash portion of the Hanesbrands acquisition, refinance Hanesbrands' existing debt, and pay related transaction costs. The deal is expected to close on October 7, 2025, subject to customary closing conditions.

Gildan Activewear Inc. (GIL) has announced the pricing of a private placement of $1.2 billion in unsecured debt, consisting of two tranches: 4.7% senior unsecured notes due in 2030 and 5.4% senior unsecured notes due in 2035. The proceeds will be used to fund the cash portion of the acquisition of Hanesbrands Inc., refinance Hanesbrands' existing debt, and cover related transaction costs. The deal is expected to close on October 7, 2025, subject to customary closing conditions From Skechers to Foot Locker: Tariff chaos spurs record-high footwear, apparel deals^[1].

The private placement approach allows Gildan to avoid the extensive disclosure and time requirements of public registration, enabling faster execution of the Hanesbrands acquisition. The notes have not been and will not be registered under the Securities Act of 1933, as amended, or under any state securities laws or the securities laws of any other jurisdiction. Therefore, the notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws From Skechers to Foot Locker: Tariff chaos spurs record-high footwear, apparel deals^[1].

The 4.7% and 5.4% interest rates reflect current market conditions for 5-year and 10-year corporate debt. The 0.7% spread between the two tranches indicates investors demand modest additional compensation for the longer commitment period. Structuring as senior unsecured obligations keeps Gildan's balance sheet relatively flexible compared to secured debt, though at the cost of slightly higher interest rates. The company has maintained equal ranking with its existing unsecured debt, avoiding subordination complexities that would concern existing creditors From Skechers to Foot Locker: Tariff chaos spurs record-high footwear, apparel deals^[1].

This transaction marks a significant industry consolidation play between two major apparel manufacturers. The deal is expected to close on October 7, 2025, subject to customary closing conditions. Gildan's financial strategy with staggered maturities to manage refinancing risk demonstrates a thoughtful approach to navigating the current market conditions and the uncertainty brought by tariffs and geopolitical risks From Skechers to Foot Locker: Tariff chaos spurs record-high footwear, apparel deals^[1].