Levi Strauss & Co. is offering up 450 million euros, or $474 million at current exchange, of senior notes due 2027 in a private placement with institutional buyers.
The denim brand intends to use capital raised from the offering, along with cash on hand, to purchase $525 million in principal outstanding notes set to mature in 2022 and for expenses related to the transaction.
In a statement on the tender offer, which is set to expire Feb. 28, the company said it will pay $1,043 per $1,000 in principal 2022 notes.
A Levi Strauss & Co. spokesperson could not be reached immediately for comment.
The company earlier this month posted sales and profit growth for the fourth year running. Annual profits rose 39.2 percent to $291 million from $209 million in 2015 on sales that increased 1.3 percent to $4.6 billion from $4.5 billion. Sales in constant currencies rose 3 percent.
The company wasn’t immune from the year-end slowdown experienced by a host of retailers, and said its fourth-quarter profit slipped 5 percent to $96 million from $101 million in the same period in the prior year. Meanwhile, sales inched up 1.1 percent to $1.3 billion from $1.29 billion while sales in constant currencies grew 2 percent.