Gildan Activewear Inc., a leader in apparel manufacturing, has entered into a financial agreement with the esteemed Caisse de dépôt et placement du Québec (CDPQ), stating the issuance of CAD$200 million in senior unsecured notes to CDPQ, carrying a 6.0% annual interest rate with a 5-year maturity from the issue date. The funds acquired through this transaction are designated for share repurchase and debt settlement. Gildan commits to retaining its headquarters in Québec for at least seven years, upholding local leadership and consenting to adhere to Global Minimum Tax requirements. Kim Thomassin of CDPQ highlighted the investment as a first step towards a robust partnership, aligning with CDPQ’s vision to become a key shareholder influenced by Gildan’s business plan and its commitments. Tim Hodgson, Gildan’s Chairman, and CEO Vince Tyra regard CDPQ’s investment as a testament to the strength of the company and its governance, considering it a positive indicator for the business’s potential. The closure of the deal is contingent on due diligence and standard closing conditions, scheduled on or around June 4, 2024. The offering of notes takes place within Canada, exempt from prospectus requirements under Canadian securities law, and are neither registered under U.S. securities laws nor available for U.S. public offering. The release contains forward-looking statements subject to risks, uncertainties, and assumptions, with potential variation in outcomes relative to the predicted financial utilization, transaction completion, and corporate objectives.

Apparel Manufacturing, Investment Management,Canada, Québec

https://www.cdpq.com/en/news/pressreleases/gildan-announces-c200-million-private-placement-financing-cdpq