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To: Lucretius who wrote (64143)	2/2/2001 7:48:53 AM
From: Box-By-The-Riviera™	Respond to of 436258

BOA is fashion conscious if not unconscious (Refiles with dropped word "billion" in headline) SAN FRANCISCO, Calif., Feb 1 (Reuters) - Jeans maker Levi Strauss & Co. said on Thursday it has secured $1.05 billion in credit and loans, giving the famed apparel-maker more flexibility as it tries to reverse years of flagging sales. The privately held, 148-year-old maker of its namesake jeans and Dockers pants, said lower borrowing costs will help it pare down debt and save it several million dollars a year in borrowing costs. Levi's new credit facility from a consortium of banks had been expected to total $1.5 billion, but the company chose to privately place about $500 million in senior notes instead. The San Francisco-based company used proceeds from that bond offering, which carried a coupon of 11-5/8 percent, to pay down existing debt. "We believe this show of support from our financing partners and members of the investment community...underscores the progress we are making with our turnaround strategies," Chief Financial Officer Bill Chiasson said in a statement. The new credit and loans extend the maturity of the company's credit to Aug. 31, 2003 from Jan. 31, 2002. Bank of America, N.A. <BAC.N>, Citicorp USA <C.N> and The Bank of Nova Scotia <BNS.TO> arranged the new facility. It includes a $250 million loan with an interest rate of 3.25 percentage points over Libor (London Interbank Offered Rate) and a $100 million term loan and $700 million revolving credit line with an interest rate of 3.5 percentage points over Libor. Those lending spreads will fall if Levi Strauss' credit ratings are upgraded. That would be welcome news for the company, which has struggled amid competition from other more youth-oriented brands that have cut into Levi's once-dominant market share. In January, the firm said annual sales slumped for the fourth year in a row, dipping 9.6 percent to $4.65 billion from $5.14 billion in 1999. It said, however, that fourth quarter sales fell just 8.5 percent from a year earlier to $1.29 billion from $1.41 billion. Credit rating agency Moody's Investors Service rates Levi's bank loans "Ba2," its second highest junk grade, and its senior unsecured debt "Ba3," one notch lower. Standard & Poor's rates the new loans "BB" and the notes "BB-minus," each roughly equivalent to Moody's grades. As of Nov. 26, the company had $2.1 billion in debt. REUTERS Rtr 23:00 02-01-01