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PVH Corp. (NYSE:PVH), a leading apparel company with a market capitalization of $3 billion, has entered into an agreement to offer $500 million in senior notes due 2030, according to a Securities and Exchange Commission filing on Friday. The notes carry an interest rate of 5.500% and are scheduled for semi-annual interest payments starting December 13, 2025. According to InvestingPro data, PVH maintains strong financial health with an impressive free cash flow yield of 19%.
The company, incorporated in Delaware and headquartered in New York, announced the completion of the offering under an existing shelf registration statement. The underwriting agreement for the offering was made with Barclays (LON:BARC) Capital Inc., BofA Securities, Inc., Citigroup (NYSE:C) Global Markets Inc., J.P. Morgan Securities LLC, and Mizuho (NYSE:MFG) Securities USA LLC, acting as representatives of the underwriters.
The proceeds from the sale of the notes, estimated at approximately $489.6 million after underwriting discounts and expenses, are intended to repay or redeem PVH’s existing 4⅛% Senior Notes due 2025 and for general corporate purposes.
PVH has the option to redeem the notes at any time before May 13, 2030, at a specified redemption price, plus accrued interest. From May 13, 2030, the company can redeem the notes at 100% of the principal amount plus any accrued interest.
The notes are unsecured and rank equally with PVH’s other unsecured and unsubordinated debt. The terms also include covenants limiting the company’s ability to incur liens, engage in sale and leaseback transactions, and consolidate or merge or dispose of assets.
This financial move comes as part of PVH’s broader strategy to manage its debt portfolio. The information is based on a press release statement.
In other recent news, PVH Corp reported first-quarter earnings that exceeded Wall Street expectations, with earnings per share of $2.30 compared to the forecasted $2.23. The company also reported revenue of $1.98 billion, surpassing the anticipated $1.93 billion. Despite these positive results, PVH Corp reduced its fiscal year 2025 earnings per share guidance by approximately 14%, citing limited tariff mitigation options and challenges with the Calvin Klein platform. Jefferies analysts responded by lowering their price target for PVH Corp stock from $105 to $95, maintaining a Buy rating. Similarly, Needham analysts adjusted their price target to $100 from $115, also keeping a Buy rating, reflecting market disappointment particularly concerning the company’s margins. Needham analysts further revised their earnings per share forecasts for fiscal years 2025 and 2026, lowering them to $10.92 and $12.76, respectively. Additionally, PVH Corp announced new leadership for Calvin Klein and is implementing cost-saving initiatives to address ongoing challenges.
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