Gildan Sells $500 Million of Debt in Its Debut Canada Offering

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(Bloomberg) -- Gildan Activewear Inc. sold C$700 million ($500 million) of notes in its first offering in the Canadian currency.

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The two-part deal consisted of five- and seven-year maturities, with the latter priced 1.4 percentage point above a government benchmark, according to people with knowledge of the matter who asked not to be identified discussing private matters. Offers for that tranche were more than five times the C$200 million of notes available.

Montreal-based Gildan is the latest newcomer to Canada’s investment-grade market, adding supply at a time of such robust demand that investors have been willing to forgo profit for size. Company officials met with investors over the past week as spreads in Canada of late have been at their tightest in three years.

Gildan didn’t respond to a request for comment Wednesday.

The company was embroiled in a costly proxy fight earlier this year that it lost. The debt sale align with activist shareholders’ strategies for boosting Gildan’s stock price, including borrowing to fund share buybacks.

Terms seen by Bloomberg News didn’t list a use of proceeds for the bond sale.

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