Warnaco Secures Credit

Warnaco Group, Inc. closed on a $200 million senior secured term loan due 2018 with a floating interest rate of at least 1.0% plus a fixed margin of 2.75%. The loan has been assigned ratings of BBB- by Standard & Poor’s and Ba1 by Moody’s, and both rating companies affirmed Warnaco’s corporate credit ratings at these levels with a stable outlook. Warnaco plans to use the proceeds for general corporate purposes, which include funding internal growth and acquisitions, repaying revolving credit borrowings, and repurchasing common stock. Accordingly, the company intends to accelerate the repurchase of its shares under its previously authorized five million share repurchase program.