Levi Strauss & Co.'s bank debt was trading half a point higher across its term loans after announcing plans to sell its Dockers brand. "Mostly the floating, but also the fixed [pieces] were pretty much active," said a trader. Levi's $200 million fixed rate "B" loan and the $300 million floating-rate "A" loan were changing hands at 105 1/2 and 106 1/2, north of the previous week's 105-106 levels. The "B" loan has a spread of 10% and the "A" loan is priced at LIBOR plus 6 7/8%.
The clothing company currently has $2.02 billion of debt outstanding. A Levi's spokeswoman said the priority with the Dockers sale is to reduce debt. "That is an ongoing focus," she noted. Since Dockers trademark backs the term loan, Levi's will seek amendments to its credit facilities to facilitate the brand's sale, she said.