Levi Strauss & Co. announced that it will redeem the entire outstanding principal amount of its 5.00% Senior Notes due 2025 (the “Notes”). The redemption date for the Notes is September 30, 2021.The aggregate principal amount of the Notes outstanding is $200 million. The redemption price for the
Notes will consist of 101.667% of the principal amount of the Notes outstanding, plus accrued and unpaid interest on the Notes, if any, up to, but excluding, the redemption date. The company plans to use cash on hand to fund the redemption of the Notes.
“Our ability to generate strong cash flow has enabled the company to both invest in our organic business and fund our recently announced acquisition, as well as return dividends to pre-pandemic levels,” said Harmit Singh, chief financial officer of Levi Strauss & Co. “Even after these uses of capital, liquidity remains solid and we will now comfortably repay the remaining $200 million of our 5% Notes, which will take our gross debt back to pre-pandemic levels.”
Redemption of these Notes will save the company approximately $10 million annually in interest expense.
A notice of redemption is being sent to all currently registered holders of the Notes by the Trustee, Wells Fargo Bank, National Association.