CHICAGO, Oct. 14 /PRNewswire/ -- Fruit of the Loom, Ltd. (NYSE:FTL), one
of the world's leading marketers and manufacturers of basic family apparel,
announced today that it has reached agreement with its syndicated bank group
on a waiver of the financial covenants under the Company's senior credit
agreements through January 31, 2000. The Company also announced that it has
signed a commitment with a new lender to replace the current receivables
backed facility. The new receivables backed facility will not be subject to
credit rating defaults. The Company's closing of this newly committed
receivables financing is subject to a definitive purchase agreement and other
documentation satisfactory to the new lender as well as normal representations
and warranties customary with similar financings.
The Company also reported that its final bond payment with respect to its
7 7/8% unsecured senior notes of approximately $45 million, and the Company's
other obligations with respect to its 8 7/8% senior notes and other debt
agreements were made as scheduled.
The Company also announced that John B. Holland, the Company's former
President and Chief Operating Officer for over twenty years from the
mid-seventies to the early nineties, has rejoined the Company to consult with
Dennis Bookshester, the Acting Chief Executive Officer, to oversee the
Company's manufacturing and completion of its 2000 business plan.
The Company expects to release its third quarter results on Thursday,
November 4, 1999.
Except for historical information contained herein, information set forth
in this news release may contain statements and information, which describe or
reflect the Company's beliefs concerning future business conditions and the
outlook for the Company. These forward-looking statements are subject to
risks, uncertainties and other facts, which could cause the Company's actual
results, performance or achievement to differ materially from those expressed
in, or implied by, these statements. These risks, uncertainties and other
factors include, but are not limited to, the following: financial strength of
the retail industry, particularly the mass merchant channel, the level of
consumer spending for apparel, the amount of sales of the Company's activewear
screenprint products, the competitive pricing environment within the basic
apparel segment of the apparel industry, the Company's ability to develop new
products, the Company's successful planning and execution of production
necessary to maintain inventories at levels sufficient to meet customer
demand, the Company's effective income tax rate, the success of planned
advertising, marketing and promotional campaigns, international activities,
the resolution of legal proceedings and other contingent liabilities, and
weather conditions in the locations in which the Company manufactures and
sells its products. Please refer to the Company's documents on file with the
Securities and Exchange Commission for other risks and uncertainties.
Fruit of the Loom, Ltd. is a marketing oriented, international basic
apparel company, emphasizing branded products for consumers ranging from
infants to senior citizens. The Company manufactures and markets men's and
boys' underwear, women's and girls' underwear, printable activewear,
outerwear, casualwear, sportswear and childrenswear. Fruit of the Loom
employs 30,000 people in over 60 locations worldwide. Brand names include
FRUIT OF THE LOOM(R), BVD(R), GITANO(R), BEST(TM) and SCREEN STARS(R).
Licensed brands include MUNSINGWEAR(R), and WILSON(R). Licensed apparel
bearing the logos or insignia of the major sports leagues and their teams and
certain popular players in the leagues, and the logos of most major colleges
and universities, are marketed under the PRO PLAYER(R) and FANS GEAR(R)
brands.
SOURCE Fruit of the Loom, Ltd.
-0- 10/14/1999 |
