Davis Polk Advises Kontoor Brands, Inc. on $1.55 Billion Senior Secured Credit Facilities

Davis Polk advised Kontoor Brands, Inc. and Lee Wrangler International SAGL, Kontoor’s wholly owned Swiss subsidiary, in connection with a $750 million senior secured term loan A facility, a $300 million senior secured term loan B facility and a $500 million senior secured revolving credit facility. The credit facilities were arranged by a syndicate of banks including JPMorgan Chase, Barclays, BofA, HSBC and Wells Fargo, and JPMorgan Chase serves as administrative agent.

The credit facilities were incurred in connection with the anticipated separation of Kontoor from V.F. Corporation on May 22, 2019. Proceeds will be used to fund a cash transfer to members of VF’s group and for general corporate and working capital purposes after the separation. 

VF is a global leader in branded lifestyle apparel, footwear and accessories. Kontoor consists of VF’s legacy denim brands and outlet business. After the separation, Kontoor will be a global leader in the denim category, with iconic brands including Wrangler and Lee.

The Davis Polk finance team included partner Meyer C. Dworkin, counsel Mayer J. Steinman and associates Ilona C. Potiha, Madeleine Vella, Matthew S. Scarano and Roman Shapurko. The tax team included partner Rachel D. Kleinberg and associate Christina L. Tacoronti. The intellectual property and technology team included partner Frank J. Azzopardi and associate Christopher C. Woller. All members of the Davis Polk team are based in the New York and Northern California offices.